Question: Exercise 21-3 Preparing flexible budgets LO P1 Tempo Company's fixed budget (based on sales of 14,000 units) for the first quarter reveals the following. Fixed

Exercise 21-3 Preparing flexible budgets LO P1

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

Fixed BudgetSales (14,000 units $212 per unit)$2,968,000Cost of goods soldDirect materials$322,000Direct labor602,000Production supplies378,000Plant manager salary122,0001,424,000Gross profit1,544,000Selling expensesSales commissions98,000Packaging210,000Advertising100,000408,000Administrative expensesAdministrative salaries172,000Depreciationoffice equip.142,000Insurance112,000Office rent122,000548,000Income 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 12,000 units.

(4)Compute the income from operations for sales volume of 16,000 units.

Compute the total variable cost per unit.

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