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In: Accounting

Tempo Company's fixed budget (based on sales of 14,000 units) for the first quarter reveals the...

Tempo Company's fixed budget (based on sales of 14,000 units) for the first quarter reveals the following.

Fixed Budget
Sales (14,000 units × $220 per unit) $ 3,080,000
Cost of goods sold
Direct materials $ 350,000
Direct labor 616,000
Production supplies 378,000
Plant manager salary 150,000 1,494,000
Gross profit 1,586,000
Selling expenses
Sales commissions 112,000
Packaging 210,000
Advertising 100,000 422,000
Administrative expenses
Administrative salaries 200,000
Depreciation—office equip. 170,000
Insurance 140,000
Office rent 150,000 660,000
Income from operations $ 504,000


(1) Compute the total variable cost per unit.

Compute the total variable cost per unit.
Variable cost per unit

(2) Compute the total fixed costs.

Compute the total fixed costs.
Total fixed costs

(3) Compute the income from operations for sales volume of 12,000 units.
Income from operations at sales of 12,000 units

(4) Compute the income from operations for sales volume of 16,000 units.

Income from operations at sales of 16,000 units

Solutions

Expert Solution

ekkarill92 answered 8 months ago
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Tempo Company's fixed budget (based on sales of 14,000 units) for the first quarter reveals the...
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