Exercise 23-2 Preparing flexible budgets LO P1 Tempo Company's fixed budget (based on sales of 18,000 units) for the first quarter of calendar year 2017 reveals the following Fixed Budget Sales (18,000 units) Cost of goods sold $3,636,000 $414,006o Direct materials Direct labor Production supplies Plant manager salary 774,000 504,000 214,000 1,906,000 Gross profit Selling expenses 1,730,000 126,000 270,000 100,000 ales commissions Packaging Advertising 496,000 Administrative expenses Administrative salaries Depreciation-office equip. 234,000 Insurance OTTice rent 264,000 204,000 214,000 916,000 $ 318,000 Income from operations For Quarter Ended March 31, 2017 Flexible Budget Flexible Budget at Variable Total Fixed Cost 20,000 units Amount per Unit Variable costs: Fixed costs