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

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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 Ă— $220 per unit)$3,080,000
Cost of goods sold
Direct materials$350,000
Direct labor616,000
Production supplies378,000
Plant manager salary150,0001,494,000
Gross profit1,586,000
Selling expenses
Sales commissions112,000
Packaging210,000
Advertising100,000422,000
Administrative expenses
Administrative salaries200,000
Depreciation—office equip.170,000
Insurance140,000
Office rent150,000660,000
Income from operations$504,000


(1) Compute the total variable cost per unit.

Compute the total variable cost per unit.

Variable cost per unit

(2) Compute the total fixed costs.

Compute the total fixed costs.

Total fixed costs

(3) Compute the income from operations forsales volume of 12,000 units.

Income from operations at sales of12,000 units

(4) Compute the income from operations forsales volume of 16,000 units.

Income from operations at sales of16,000 units

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