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Tempo Company's fixed budget (based on sales of 12,000 units) for the first quarter reveals the following. Fixed Budget $ 2, 424,000 $300,000 516,000 336,000
Tempo Company's fixed budget (based on sales of 12,000 units) for the first quarter reveals the following. Fixed Budget $ 2, 424,000 $300,000 516,000 336,000 100,000 1,252,000 1,172,000 Sales (12,000 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 96,000 168,000 100,000 364,000 150,000 120,000 90,000 100,000 460,000 $ 348,000 (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. Compute the total variable cost per unit. Variable cost per unit Compute the total fixed costs. Total fixed costs Compute the income from operations for sales volume of 10,000 units. Income from operations at sales of 10,000 units Compute the income from operations for sales volume of 14,000 units. Income from operations at sales of 14,000 units
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