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

Sales (14,000 units)

$

3,066,000

Cost of goods sold

Direct materials

$

350,000

Direct labor

616,000

Production supplies

392,000

Plant manager salary

150,000

1,508,000

Gross profit

1,558,000

Selling expenses

Sales commissions

112,000

Packaging

224,000

Advertising

100,000

436,000

Administrative expenses

Administrative salaries

200,000

Depreciationoffice equip.

170,000

Insurance

140,000

Office rent

150,000

660,000

Income from operations

$

462,000

TEMPO COMPANY
Flexible Budgets
For Quarter Ended March 31, 2017
	------Flexible Budget------		------Flexible Budget at ------
	Variable Amount per Unit	Total Fixed Cost	12,000 units	14,000 units	16,000 units
Variable costs:
Fixed costs: