Tempo Company's fixed budget (based on sales of 16,000 units) for the first quarter of calendar year 2017 reveals the following.

	fixed budget
Sales (16,000 units)						ps	3,264,000
cost of goods sold
Direct materials		ps	384.000
Direct labour			672,000
production supplies			448,000
plant manager salary			184.000				1,688,000
Gross profit							1,576,000
selling expenses
Sales commissions			128,000
packaging			240.000
Advertising			100,000				468,000
administrative expenses
administrative salaries			234,000
Depreciation: office equipment.			204,000
Safe			174.000
Office rent			184.000				796,000
operating income						ps	312,000

Complete the following flexible budgets for sales volumes of 14,000, 16,000, and 18,000 units. (Round the cost per unit to 2 decimal places.)

TIME COMPANY
Flexible Budgets
For the quarter ended March 31, 2017
	------Flexible budget------		------Flexible budget in ------
	Variable Amount per Unit	total fixed cost	14,000 units	16,000 units	18,000 units
Sales
Variable costs:
Direct materials
Direct labour
production supplies
Sales commissions
packaging
Total Variable Costs	0.00		0	0	0
Contribution margin
Fixed costs:
plant manager salary
Advertising
administrative salaries
Depreciation - Office equipment.
Safe
Office rent
Total fixed costs		0	0	0	0
operating income

Answer rating: 100% (QA)

First we need to identify the variable and fixed costs From the given information we can assume that ... View the full answer