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

(1) Compute the total variable cost per unit. (2) Compute the total fixed costs. (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.

	Fixed Budget
Sales (14,000 units $205 per unit)						$	2,870,000
Cost of goods sold
Direct materials		$	350,000
Direct labor			602,000
Production supplies			364,000
Plant manager salary			150,000				1,466,000
Gross profit							1,404,000
Selling expenses
Sales commissions			98,000
Packaging			196,000
Advertising			100,000				394,000
Administrative expenses
Administrative salaries			200,000
Depreciationoffice equip.			170,000
Insurance			140,000
Office rent			150,000				660,000
Income from operations						$	350,000