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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 × $207 per unit) $ 2,898,000 Cost of goods soldDirect materials $ 322,000 Direct labor 602,000 Production supplies364,000 Plant manager salary 122,000 1,410,000 Gross profit1,488,000 Selling expenses Sales commissions 98,000 Packaging196,000 Advertising 100,000 394,000 Administrative expensesAdministrative salaries 172,000 Depreciation—office equip. 142,000Insurance 112,000 Office rent 122,000 548,000 Income fromoperations $ 546,000

(1) Compute the total variable cost per unit.

(2) Compute the total fixed costs.

(3) Compute the income from operations for sales volume of12,000 units.

(4) Compute the income from operations for sales volume of16,000 units.

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