Fixed Budget Sales (12,000 units * $219 per unit) $2, 628,000 Cost of goods sold Direct materials $288, 000 Direct labor 516,000 Production supplies 324,000 Plant manager salary 88,000 1, 216,000 Gross profit 1, 412,000 Selling expenses Sales commissions 84,000 Packaging 180,000 Advertising 100,000 364,000 Administrative expenses Administrative salaries 138,000 Depreciation office equip. 108,000 Insurance 78,000 Office rent 88,000 412,000 Income from operations S 636,000