Tempo Company's fixed budget (based on sales of 14,000 units) for the first quarter reveals the following.

	Fixed Budget
Sales (14,000 units $207 per unit)						$	2,898,000
Cost of goods sold
Direct materials		$	322,000
Direct labor			602,000
Production supplies			392,000
Plant manager salary			122,000				1,438,000
Gross profit							1,460,000
Selling expenses
Sales commissions			112,000
Packaging			196,000
Advertising			100,000				408,000
Administrative expenses
Administrative salaries			172,000
Depreciationoffice equip.			142,000
Insurance			112,000
Office rent			122,000				548,000
Income from operations						$	504,000

(3) Compute the income from operations for sales volume of 12,000 units. (4) Compute the income from operations for sales volume of 16,000 units.