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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 $2,640,000 $ 276,000 528,000 312,000 76,000
Tempo Company's fixed budget (based on sales of 12,000 units) for the first quarter reveals the following. Fixed Budget $2,640,000 $ 276,000 528,000 312,000 76,000 1,192,000 1,448,000 Sales (12,000 units * $220 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 84,000 192,000 100,000 376,000 126,000 96,000 66,000 76,000 364,000 708,000 $ (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. Required 1 Required 2 Required 3 Required 4 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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