Tempo Company's fixed budget (based on sales of 12,000 units)for the first quarter of calendar year 2017 reveals thefollowing.
| Fixed Budget |
| Sales (12,000 units) | | | | | | $ | 2,436,000 | |
| Cost ofgoods sold | | | | | | | | |
| Directmaterials | | $ | 288,000 | | | | | |
| Directlabor | | | 516,000 | | | | | |
| Production supplies | | | 324,000 | | | | | |
| Plantmanager salary | | | 88,000 | | | | 1,216,000 | |
| Grossprofit | | | | | | | 1,220,000 | |
| Sellingexpenses | | | | | | | | |
| Salescommissions | | | 96,000 | | | | | |
| Packaging | | | 192,000 | | | | | |
| Advertising | | | 100,000 | | | | 388,000 | |
| Administrative expenses | | | | | | | | |
| Administrative salaries | | | 138,000 | | | | | |
| Depreciation—office equip. | | | 108,000 | | | | | |
| Insurance | | | 78,000 | | | | | |
| Officerent | | | 88,000 | | | | 412,000 | |
| Incomefrom operations | | | | | | $ | 420,000 | |
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Complete the following flexible budgets for sales volumes of10,000, 12,000, and 14,000 units. (Round cost per unit to 2 decimalplaces.)
