Reference no: EM132520863

Tempo Company's fixed budget (based on sales of 16,000 units) for the first quarter reveals the following.

Fixed                                                     Budget

Sales (16,000 units × $209 per unit) $3,344,000

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 1,656,000

Selling expenses Sales commissions 112,000

Packaging 256,000 Advertising 100,000 468,000

Administrative expenses

Administrative salaries 234,000

Depreciation-office equip. 204,000

Insurance 174,000

Office rent 184,000 796,000

Income from operations $392,000

Question (1) Compute the total variable cost per unit.

Question (2) Compute the total fixed costs.

Question (3) Compute the income from operations for sales volume of 14,000 units.

Question (4) Compute the income from operations for sales volume of 18,000 units.