Exercise $23-3$ Preparing flexible budgets LO P$1$

Tempo Company's fixed budget $($based on sales of $7,000$ units$)$ for the first quarter reveals the following.

Fixed Budget

Sales $(7,000$ units $\backslash$times $$400$ per unit$)$ $ $2,800,000$

Cost of goods sold

Direct materials $ $280,000$

Direct labor $490,000$

Production supplies $175,000$

Plant manager salary $65,0001,010,000$

Gross profit $1,790,000$

Selling expenses

Sales commissions $140,000$

Packaging $154,000$

Advertising $125,000419,000$

Administrative expenses

Administrative salaries $85,000$

Depreciation$$office equip. $35,000$

Insurance $20,000$

Office rent $36,000176,000$

Income from operations $ $1,195,000$

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

$(2)$ Compute the total fixed costs.

$(3)$ Compute the income from operations for sales volume of $6,000$ units.

$(4)$ Compute the income from operations for sales volume of $8,000$ units.