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Tempo Company's fixed budget (based on sales of 12,000 units) for the first quarter reveals the following. Fixed BudgetSales (12,000 units $220 per unit)$2,640,000Cost of

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

Fixed BudgetSales (12,000 units $220 per unit)$2,640,000Cost of goods soldDirect materials$276,000Direct labor516,000Production supplies324,000Plant manager salary76,0001,192,000Gross profit1,448,000Selling expensesSales commissions108,000Packaging180,000Advertising100,000388,000Administrative expensesAdministrative salaries126,000Depreciationoffice equip.96,000Insurance66,000Office rent76,000364,000Income from operations$696,000

(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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