Reference no: EM133041199

Question - 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 × $207 per unit) $3,312,000

Cost of goods sold Direct materials $384,000

Direct labor 704,000

Production supplies 432,000

Plant manager salary 184,000 1,704,000

Gross profit 1,608,000

Selling expenses Sales commissions 112,000

Packaging 240,000

Advertising 100,000 452,000

Administrative expenses Administrative salaries 234,000

Depreciation-office equip. 204,000

Insurance 174,000

Office rent 184,000 796,000

Income from operations $360,000

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 14,000 units.

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