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In: Accounting

Tempo Company's fixed budget (based on sales of 12,000 units) for the first quarter reveals the...

Tempo Company's fixed budget (based on sales of 12,000 units) for the first quarter reveals the following.

Fixed Budget
Sales (12,000 units × $215 per unit) $ 2,580,000
Cost of goods sold
Direct materials $ 288,000
Direct labor 504,000
Production supplies 324,000
Plant manager salary 88,000 1,204,000
Gross profit 1,376,000
Selling expenses
Sales commissions 96,000
Packaging 180,000
Advertising 100,000 376,000
Administrative expenses
Administrative salaries 138,000
Depreciation—office equip. 108,000
Insurance 78,000
Office rent 88,000 412,000
Income from operations $ 588,000


(1) Compute the total variable cost per unit.
(2) Compute the total fixed costs.
(3) Compute the income from operations for sales volume of 10,000 units.
(4) Compute the income from operations for sales volume of 14,000 units.

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Expert Solution

ekkarill92 answered 1 year ago
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