Tempo Company's fixed budget (based on sales of 16,000 units) for the first quarter reveals the following. Sales (16,000 units x $215 per unit) Fixed Budget $3,440,000 Cost of goods sold Direct materials Direct labor Production supplies Plant manager salary Gross profit Selling expenses Sales commissions Packaging $368,000 704,000 432,000 168,000 1,672,000 1,768,000 128,000 240,000 Advertising 100,000 468,000 Administrative expenses Administrative salaries 218,000 Depreciation-office equip. 188,000 Insurance 158,000 Office rent 168,000 732,000 Income from operations $ 568,000