Tempo Company's fixed budget (based on sales of 12,000 units) for the first quarter of calendar year 2017 reveals the following.

	Fixed Budget
Sales (12,000 units)						$	2,580,000
Cost of goods sold
Direct materials		$	288,000
Direct labor			528,000
Production supplies			336,000
Plant manager salary			88,000				1,240,000
Gross profit							1,340,000
Selling expenses
Sales commissions			84,000
Packaging			180,000
Advertising			100,000				364,000
Administrative expenses
Administrative salaries			138,000
Depreciationoffice equip.			108,000
Insurance			78,000
Office rent			88,000				412,000
Income from operations						$	564,000

TEMPO COMPANY Flexible Budgets For Quarter Ended March 31, 2017 ------Flexible Budget------ ------Flexible Budget at ------ Variable Total Fixed 10,000 units 12,000 units 14,000 Amount per Cost units Unit Variable costs: Fixed costs