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Tempo Company's fixed budget $($based on sales of $7,000$ units$)$ follows.

$\backslash$table$[[$Fixed Budget$],[$Sales $(7,000$ units $\backslash$times $$490$ per unit$),$$$2,800,900],[$Costs$,],[$Direct materials,$280,000],[$Direct labor,$490,000],[$Indirect materials,$175,000],[$Supervisor salary,$65,000],[$Sales commissions,$140,000],[$Shipping$,154,000],[$Administrative salaries,$210,000],[$Depreciation$-$Office equipment,$35,000],[$Insurance$,20,000],[$office rent,$36,000],[$Income$,1,195,000]]$

Compute total variable cost per unit.

Compute total fixed costs.

Prepare a flexible budget at activity levels of $6\mathrm{.}000$ units and $8,000$ units.

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Prepare a flexible budget at activity levels of $6,000$ units and $8,000$ units.

$\backslash$table$[[$TEMPO COMPANY$],[,$Flexible Budget,Flexible Budget for:$],[,\backslash$table$[[$Variable Amount$],[$per Unit$]],\backslash$table$[[$Total Fixed$],[$Cost$]],\backslash$table$[[$Units Sales$],[$of $6,000]],\backslash$table$[[$Unit Sales of$],[8,000]]],[$Sales$,$$$400\mathrm{.}00,,$$$2,400,000,$$$3,200,000],[$Variable costs$],[$Direct materials,$40\mathrm{.}00,,240,000,320,000],[$Direct labor,$70\mathrm{.}00,,420,000,560,000],[$Indirect materials,$25\mathrm{.}00,,150,000,200,000],[$Sales commissions,$20\mathrm{.}00,,120,000,160,000],[$Shipping$,22\mathrm{.}00,,132,000,176,000],[-,,,?,],[$Total variable costs,$177\mathrm{.}00,,1,062,000,1,416,000],[$Contribution margin,?,,$1,338,000,1,784,000],[$Fixed costs$],[$Depreciation$-$Office equipment,,$35,000,35,000,35,000],[$Supervisor salary,$(,65,000,65,000,65,000],[$Insurance$,,20,000,20,000,20,000],[$Office rent,,$36,000,36,000,36,000],[$Administration salaries,,$210,000,210,000,210,000],[$Sales$],[$Total fixed costs,,$ $366,000,$$ $360,000,$$ $366,000]]$

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