Exercise 8-2 Preparing flexible budgets LO P1 Tempo Company's fixed budget (based on sales of 18,000 units) for the first quarter of calendar year 2017 reveals the following Fixed Budget $3,798,000 Sales (18,000 units) Cost of goods sold Direct materials Direct labor Production supplies Plant manager salary $432,000 792,000 486,000 232,000 1,942,000 1,856,000 Gross profit Selling expenses Sales commissions Packaging Advertising 126,000 252,000 100,000 478,000 Administrative expenses Administrative salaries Depreciation-office equip. Insurance Office rent 282,000 252,000 222,000 232,000988,90 Income from operations $ 390,000