Question
Need homework help please! Thank you! Tempo Company's fixed budget (based on sales of 18,000 units) for the first quarter reveals the following. Fixed BudgetSales
Need homework help please! Thank you!
Tempo Company's fixed budget (based on sales of 18,000 units) for the first quarter reveals the following.
Fixed BudgetSales (18,000 units $209 per unit)$3,762,000Cost of goods soldDirect materials$432,000Direct labor774,000Production supplies486,000Plant manager salary232,0001,924,000Gross profit1,838,000Selling expensesSales commissions144,000Packaging288,000Advertising100,000532,000Administrative expensesAdministrative salaries282,000Depreciationoffice equip.252,000Insurance222,000Office rent232,000988,000Income from operations$318,000
(1)Compute the total variable cost per unit.
(2)Compute the total fixed costs.
(3)Compute the income from operations for sales volume of 16,000 units.
(4)Compute the income from operations for sales volume of 20,000 units.
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