Exercise 23-3 Preparing flexible budgets P1 Tempo Company's fixed budget (based on sales of 7,000 units) for the first quarter reveals the following. Compute (1) the total variable cost per unit, (2) total fixed costs, (3) income from operations for sales volume of 6,000 units, and (4) income from operations for sales volume of 8,000 units. Fixed Budget $2,800,000 $280,000 490,000 175,000 65,000 1,010,000 1,790,000 Sales (7,000 units x $400 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 140,000 154,000 125.000 419,000 .. 85.000 35,000 20,000 36,000 176,000 $1,195,000 Check Income (at 6,000 units), $972,000 Page 898