Tempo Company's fixed budget (based on sales of 7,000 units) for the first quarter of calendar year 2015 reveals the following.

Prepare flexible budgets following the format of Exhibit 23.3 that show variable costs per unit, fixed costs, and three different flexible budgets for sales volumes of 6,000, 7,000, and 8,000 units.

Fixed Budget $2,800,000 $280,000 490,000 175,000 65,000 1,010,000 1.790,000 Sales (7,000 units) Cost of goods sold Direct materials Direct labor.......... Production supplies .......... Plant manager salary .......... Gross profit ................. Selling expenses Sales commissions ... Packaging ................. Advertising ............... . Administrative expenses Administrative salaries ........ Depreciation office equip. ....... Insurance ........... Office rent .................. Income from operations ......... 140,000 154,000 125,000 419.000 85,000 35,000 20,000 36,000 176,000 $1,195,000