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Tempo Company's fixed budget (based on sales of 12,000 units) for the first quarter reveals the following. Sales (12,000 units x $209 per unit)
Tempo Company's fixed budget (based on sales of 12,000 units) for the first quarter reveals the following. Sales (12,000 units x $209 per unit) Fixed Budget $2,508,000 Cost of goods sold Direct materials Direct labor Production supplies Plant manager salary Gross profit Selling expenses Sales commissions Packaging $288,000 516,000 324,000 88,000 1,216,000 1,292,000 108,000 180,000 Advertising 100,000 388,000 Administrative expenses Administrative salaries 138,000 Depreciation-office equip. 108,000 Insurance 78,000 Office rent 88,000 412,000 Income from operations $ 492,000 (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.
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