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Tempo Company's fixed budget (based on sales of 16,000 units) for the first quarter of calendar year 2017 reveals the following.
| | Fixed Budget |
| Sales (16,000 units) | | | | | | $ | 3,408,000 | |
| Cost of goods sold | | | | | | | | |
| Direct materials | | $ | 384,000 | | | | | |
| Direct labor | | | 688,000 | | | | | |
| Production supplies | | | 432,000 | | | | | |
| Plant manager salary | | | 184,000 | | | | 1,688,000 | |
| Gross profit | | | | | | | 1,720,000 | |
| Selling expenses | | | | | | | | |
| Sales commissions | | | 128,000 | | | | | |
| Packaging | | | 240,000 | | | | | |
| Advertising | | | 100,000 | | | | 468,000 | |
| Administrative expenses | | | | | | | | |
| Administrative salaries | | | 234,000 | | | | | |
| Depreciationoffice equip. | | | 204,000 | | | | | |
| Insurance | | | 174,000 | | | | | |
| Office rent | | | 184,000 | | | | 796,000 | |
| Income from operations | | | | | | $ | 456,000 | |
| |
Complete the following flexible budgets for sales volumes of 14,000, 16,000, and 18,000 units. (Round cost per unit to 2 decimal places.)
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