Ch 08, EX 8-3

Tempo Company's fixed budget (based on sales of 10,000 units) for the first quarter reveals the following Fixed Budget $ 120,00 $ 250,00 400 eeu 268 Bee 58.00 1, eve, eae 1. 120,00 Sales (10,000 units $212 per unit) cost of goods sold Direct materials Direct Labor Production supplies Plant manager salary Grass profit Selling expenses Sales commissions Packaging Advertising Administrative expenses Administrative salaries Depreciation-office equip Insurance Office rent 89 89 150, eee 18yede 33, 100 uge 80 42 800 seyede 250, eee 530, eee Income from operations S (1) Compute the total variable cost per unit (2) Compute the total fixed costs. (3) Compute the income from operations for sales volume of 8.000 units. (4) Compute the income from operations for sales volume of 12.000 units. Tempo Company's fixed budget (based on sales of 16,000 units) for the first quarter reveals the following Fixed Budget $3,408,888 3884, eee 688,000 448,000 184,000 1,784, eee 1,784, ege Sales (16,eee units * $213 per unit) Cost of goods sold Direct materials Direct labor Production supplies Plant manager salary Gross profit Selling expenses Sales commissions Packaging Advertising Administrative expenses Administrative salaries Depreciation-office equip. Insurance office rent Income from operations 128,08 256, 1ea, ese 484, ese 234, de 284,90 174,000 184, eae 796, eve 424, ese $ = (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