Tempo Company's fixed budget (based on sales of 14,000 units) for the first quarter of calendar year 2017 reveals the following. Fixed Budget $2,940,000 $322,000 602,000 378,000 122,000 1,424,000 1,516,000 Sales (14,000 units) 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 98,000 196,000 100,000 394,000 172,000 142,000 112,000 122,000 $ 548,000 574,000 TEMPO COMPANY Flexible Budgets For Quarter Ended March 31, 2017 ------Flexible Budget------ ------Flexible Budget at ------ Variable Total Fixed 12,000 units 14,000 units 16,000 Amount per Cost units Unit Variable costs: Fixed costs