Question
Tempo Company's fixed budget (based on sales of 16,000 units) for the first quarter reveals the following. Fixed BudgetSales (16,000 units $207 per unit)$3,312,000Cost of
Tempo Company's fixed budget (based on sales of 16,000 units) for the first quarter reveals the following.
Fixed BudgetSales (16,000 units $207 per unit)$3,312,000Cost of goods soldDirect materials$384,000Direct labor704,000Production supplies432,000Plant manager salary184,0001,704,000Gross profit1,608,000Selling expensesSales commissions112,000Packaging240,000Advertising100,000452,000Administrative expensesAdministrative salaries234,000Depreciationoffice equip.204,000Insurance174,000Office rent184,000796,000Income from operations$360,000
(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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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
