90.2K

Verified Solution

Link Copied!

Tempo Company's fixed budget (based on sales of 16,000 units) for the first quarter reveals the following Fixed Budget Sales (16,000 units $217 per unit) $3,472,000 Cost of goods sold Direct materials $384,000 Direct labor 672, eee Production supplies 416,000 Plant manager salary 184,000 1,656,00 Gross profit 1,816,000 Selling expenses Sales commissions 128,000 Packaging 224,000 Advertising 100,000 452,eee Administrative expenses Administrative salaries 234,000 Depreciation office equip. 204,000 Insurance 174,000 Office rent 184,800 796,000 Income from operations $ 568,000 (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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the total variable cost per unit. Variable cost per unit Re Required 2 Tempo Company's fixed budget (based on sales of 16,000 units) for the first quarter reveals the following Fixed Budget Sales (16,000 units $217 per unit) 53,472, eee Cost of goods sold Direct materials $384,000 Direct labor 672,000 Production supplies 416,000 Plant manager salary 184,000 1,656,800 Gross profit 1,816,000 Selling expenses Sales comissions 128,000 Packaging 224,000 Advertising 100,000 452,000 Administrative expenses Administrative salaries 234,000 Depreciation office equip. 204,000 Insurance 174,000 Office rent 184,000 796,000 Income from operations $ 568,000 (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 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the total fixed costs. Totalfixed costs

Answer & Explanation Solved by verified expert

See Answer