Tempo Company's fixed budget (based on sales of 12,000 units) folllows.

Fixed Budget
Sales (12,000 units $209 per unit)	2,508,000
Costs
Direct materials	300,000
Direct labor	528,000
Indirect materials	324,000
Supervisor salary	100,000
Sales commissions	84,000
Shipping	192,000
Administrative salaries	150,000
DepreciationOffice equipment	120,000
Insurance	90,000
Office rent	100,000
Income	520,000

1. Compute total variable cost per unit. 2. Compute total fixed costs. 3. Prepare a flexible budget at activity levels of 10,000 units and 14,000 units.