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Tempo Company's fixed budget (based on sales of 10,000 units) for the first quarter reveals the following. Fixed Budget Sales (10,000 units $202 per unit)
Tempo Company's fixed budget (based on sales of 10,000 units) for the first quarter reveals the following.
Fixed Budget | ||||||||
Sales (10,000 units $202 per unit) | $ | 2,020,000 | ||||||
Cost of goods sold | ||||||||
Direct materials | $ | 230,000 | ||||||
Direct labor | 440,000 | |||||||
Production supplies | 270,000 | |||||||
Plant manager salary | 30,000 | 970,000 | ||||||
Gross profit | 1,050,000 | |||||||
Selling expenses | ||||||||
Sales commissions | 80,000 | |||||||
Packaging | 160,000 | |||||||
Advertising | 100,000 | 340,000 | ||||||
Administrative expenses | ||||||||
Administrative salaries | 80,000 | |||||||
Depreciationoffice equip. | 50,000 | |||||||
Insurance | 20,000 | |||||||
Office rent | 30,000 | 180,000 | ||||||
Income from operations | $ | 530,000 | ||||||
(1) Compute the total variable cost per unit. (2) Compute the total fixed costs. (3) Compute the income from operations for sales volume of 8,000 units. (4) Compute the income from operations for sales volume of 12,000 units.
For required 3 it is NOT $130,000 and $270,000
For required 4 it is NOT $758,000 and $610,000
Please help!
1 Tempo Company's fixed budget (based on sales of 10,000 units) for the first quarter reveals the following. Fixed Budget $2,020,000 3 points $230,000 440,000 270,000 30,000 970,000 1,050,000 eBook Sales (10,000 units x $202 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 80,000 160,000 100,000 340,000 Hint 80,000 50,000 20,000 30,000 Print 180,000 $ 530,000 (1) Compute the total variable cost per unit. (2) Compute the total fixed costs. (3) Compute the income from operations for sales volume of 8,000 units. (4) Compute the income from operations for sales volume of 12,000 units. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the income from operations for sales volume of 8,000 units. Income from operations at sales of 8,000 unitsStep by Step Solution
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