Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. tempo company's fixed budget (based on sales of 14

Tempo Company's fixed budget (based on sales of 14,000 units) for the first quarter reveals...

60.1K

Verified Solution

Question

Accounting

Tempo Company's fixed budget (based on sales of 14,000 units) for the first quarter reveals the following.
Fixed Budget
Sales (14,000 units \times $214 per unit) $ 2,996,000
Cost of goods sold
Direct materials $ 336,000
Direct labor 602,000
Production supplies 378,000
Plant manager salary 136,0001,452,000
Gross profit 1,544,000
Selling expenses
Sales commissions 112,000
Packaging 210,000
Advertising 100,000422,000
Administrative expenses
Administrative salaries 186,000
Depreciationoffice equip. 156,000
Insurance 126,000
Office rent 136,000604,000
Income from operations $ 518,000
(1) Compute the total variable cost per unit.
(2) Compute the total fixed costs.
(3) Compute the income from operations for sales volume of 12,000 units.
(4) Compute the income from operations for sales volume of 16,000 units.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students