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 $205 per unit) Cost of goods sold $2,460,000 Direct materials Direct labor Production supplies Plant manager salary Gross profit Selling expenses Sales commissions Packaging Advertising $300,000 516,000 324,000 100,000 1,240,000 1,220,000 108,000 180,000 100,000 388,000 Administrative expenses Administrative salaries 150,000 Depreciation-office equip. 120,000 Insurance 90,000 Office rent 100,000 460,000 Income from operations $ 372,000