Tempo Company's fixed budget (based on sales of 10,000 units) folllows.

Fixed Budget
Sales (10,000 units $207 per unit)	2,070,000
Costs
Direct materials	250,000
Direct labor	440,000
Indirect materials	260,000
Supervisor salary	50,000
Sales commissions	80,000
Shipping	150,000
Administrative salaries	100,000
DepreciationOffice equipment	70,000
Insurance	40,000
Office rent	50,000
Income	580,000

1. Compute total variable cost per unit. 2. Compute total fixed costs. 3. Prepare a flexible budget at activity levels of 8,000 units and 12,000 units.