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Tempo Company's fixed budget (based on sales of 16,000 units) for the first quarter reveals the following. Fixed Budget Sales (16,000 units $208 per unit)

Tempo Company's fixed budget (based on sales of 16,000 units) for the first quarter reveals the following.

Fixed Budget
Sales (16,000 units $208 per unit) $ 3,328,000
Cost of goods sold
Direct materials $ 368,000
Direct labor 688,000
Production supplies 416,000
Plant manager salary 168,000 1,640,000
Gross profit 1,688,000
Selling expenses
Sales commissions 144,000
Packaging 240,000
Advertising 100,000 484,000
Administrative expenses
Administrative salaries 218,000
Depreciationoffice equip. 188,000
Insurance 158,000
Office rent 168,000 732,000
Income from operations $ 472,000

(1) Compute the total variable cost per unit. (2) Compute the total fixed costs. (3) Compute the income from operations for sales volume of 14,000 units. (4) Compute the income from operations for sales volume of 18,000 units.

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