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In: Accounting

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

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

Fixed Budget
Sales (14,000 units × $212 per unit) $ 2,968,000
Cost of goods sold
Direct materials $ 336,000
Direct labor 588,000
Production supplies 378,000
Plant manager salary 136,000 1,438,000
Gross profit 1,530,000
Selling expenses
Sales commissions 112,000
Packaging 224,000
Advertising 100,000 436,000
Administrative expenses
Administrative salaries 186,000
Depreciation—office equip. 156,000
Insurance 126,000
Office rent 136,000 604,000
Income from operations $ 490,000


(1) Compute the total variable cost per unit.
(2) Compute the total fixed costs.
(3) Compute the income from operations for sales volume of 12,000 units.
(4) Compute the income from operations for sales volume of 16,000 units.

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Expert Solution

ekkarill92 answered 2 years ago
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