Business, 08.04.2020 04:50 postorivofarms

Tempo Company's fixed budget (based on sales of 16,000 units) for the first quarter reveals the following. Fixed BudgetSales (16,000 units × $209 per unit) $ 3,344,000Cost of goods soldDirect materials $ 384,000Direct labor 688,000Production supplies 416,000Plant manager salary 184,000 1,672,000Gross profit 1,672,000Selling expensesSales commissions 128,000Packaging 240,000Advertising 100,000 468,000Administrative expensesAdministrative salaries 234,000Depreciation—office equip. 204,000Insurance 174,000Office rent 184,000 796,000Income from operations $ 408,000(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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Tempo Company's fixed budget (based on sales of 16,000 units) for the first quarter reveals the foll...

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