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Compute the total variable cost per unit

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Question - Tempo Company's fixed budget (based on sales of 18,000 units) for the first quarter reveals the following.

Fixed Budget

Sales (18,000 units × $209 per unit) $3,762,000

Cost of goods sold Direct materials $432,000

Direct labor 774,000

Production supplies 486,000

Plant manager salary 232,000 1,924,000

Gross profit 1,838,000

Selling expenses Sales commissions 144,000

Packaging 288,000

Advertising 100,000 532,000

Administrative expenses Administrative salaries 282,000

Depreciation-office equip. 252,000

Insurance 222,000

Office rent 232,000 988,000

Income from operations $318,000

Required -

(1) Compute the total variable cost per unit.

(2) Compute the total fixed costs.

(3) Compute the income from operations for sales volume of 16,000 units.

(4) Compute the income from operations for sales volume of 20,000 units.

Reference no: EM132870643

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