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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 × $219 per unit) $ 3,066,000
Cost of goods sold
Direct materials $ 350,000
Direct labor 588,000
Production supplies 392,000
Plant manager salary 150,000 1,480,000
Gross profit 1,586,000
Selling expenses
Sales commissions 98,000
Packaging 224,000
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.
(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 1 year ago
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