Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Tempo Company's fixed budget (based on sales of 12,000 units) for the first quarter reveals the following. Fixed Budget Sales (12,000 units $200 per unit)

Tempo Company's fixed budget (based on sales of 12,000 units) for the first quarter reveals the following.

Fixed Budget
Sales (12,000 units $200 per unit) $ 2,400,000
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 1,184,000
Selling expenses
Sales commissions 108,000
Packaging 168,000
Advertising 100,000 376,000
Administrative expenses
Administrative salaries 138,000
Depreciationoffice equip. 108,000
Insurance 78,000
Office rent 88,000 412,000
Income from operations $ 396,000

(1) Compute the total variable cost per unit. (2) Compute the total fixed costs. (3) Compute the income from operations for sales volume of 10,000 units. (4) Compute the income from operations for sales volume of 14,000 units.

  • Required 1
  • Required 2
  • Required 3
  • Required 4

Compute the total variable cost per unit.

Variable cost per unit

image text in transcribed

168,000 100,000 376,000 Packaging Advertising Administrative expenses Administrative salaries Depreciation-office equip. Insurance Office rent Income from operations 138,000 108,000 78,000 88,000 412,000 396,000 $ (1) Compute the total variable cost per unit. (2) Compute the total fixed costs. (3) Compute the income from operations for sales volume of 10,000 units. (4) Compute the income from operations for sales volume of 14,000 units. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the total variable cost per unit. Variable cost per unit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Energy Audit Of Building Systems An Engineering Approach

Authors: Moncef Krarti

2nd Edition

1439828717, 978-1439828717

More Books

Students also viewed these Accounting questions

Question

LO 14-4 What to do during an interview.

Answered: 1 week ago