Tempo Company's fixed budget (based on sales of 16,000 units) folllows. Fixed Budget Direct labor Sales (16,000 units x $219 per unit) Costs Direct materials Indirect materials 3,504,000 400,000 688,000 432,000 Supervisor salary 200,000 Sales commissions 112,000 Shipping 224,000 Administrative salaries 250,000 Depreciation-Office equipment 220,000 Insurance 190,000 Office rent 200,000 Income 588,000 1. Compute total variable cost per unit. 2. Compute total fixed costs. 3. Prepare a flexible budget at activity levels of 14,000 units and 18,000 units.