Tempo Company's fixed budget (based on sales of 16,000 units) follows. Fixed Budget Sales (16,000 units * $220 per unit) 3,520,000 Costs Direct materials 368,000 704,000 432,000 168,000 Direct labor Indirect materials Supervisor salary Sales commissions Shipping Administrative salaries Depreciation-office equipment 144,000 240,000 218,000 188,000 158,000 168,000 Insurance office rent Income 732,000 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.