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In: Accounting

Tempo Company's fixed budget (based on sales of 16,000 units) for the first quarter reveals the...

Tempo Company's fixed budget (based on sales of 16,000 units) for the first quarter reveals the following.

Fixed Budget
Sales (16,000 units × $202 per unit) $ 3,232,000
Cost of goods sold
Direct materials $ 400,000
Direct labor 688,000
Production supplies 448,000
Plant manager salary 200,000 1,736,000
Gross profit 1,496,000
Selling expenses
Sales commissions 128,000
Packaging 224,000
Advertising 100,000 452,000
Administrative expenses
Administrative salaries 250,000
Depreciation—office equip. 220,000
Insurance 190,000
Office rent 200,000 860,000
Income from operations $ 184,000


(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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Expert Solution

ekkarill92 answered 2 years ago
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Tempo Company's fixed budget (based on sales of 16,000 units) for the first quarter reveals the...
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