Tempo Company's fixed budget (based on sales of 18,000 units) for the first quarter reveals the following.

(1)Compute the total variable cost per unit. (2) Compute the total fixed costs. (3) Compute the income from operations for sales volume of 16,000 units. (4) Compute the income from operations for sales volume of 20,000 units.

Fixed Budget
Sales (18,000 units $214 per unit)						$	3,852,000
Cost of goods sold
Direct materials		$	450,000
Direct labor			774,000
Production supplies			504,000
Plant manager salary			250,000				1,978,000
Gross profit							1,874,000
Selling expenses
Sales commissions			144,000
Packaging			270,000
Advertising			100,000				514,000
Administrative expenses
Administrative salaries			300,000
Depreciationoffice equip.			270,000
Insurance			240,000
Office rent			250,000				1,060,000
Income from operations						$	300,000