empo Company's fixed budget (based on sales of 16,000 units) for the first quarter reveals the following. Fixed Budget Sales (16,000 units × $202 per unit) $ 3,232,000 Cost of goods sold Direct materials $ 400,000 Direct labor 704,000 Production supplies 416,000 Plant manager salary 200,000 1,720,000 Gross profit 1,512,000 Selling expenses Sales commissions 128,000 Packaging 240,000 Advertising 100,000 468,000 Administrative expenses Administrative salaries 250,000 Depreciation—office equip. 220,000 Insurance 190,000 Office rent 200,000 860,000 Income from operations $ 184,000 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.
empo Company's fixed budget (based on sales of 16,000 units) for the first quarter reveals the following. Fixed Budget Sales (16,000 units × $202 per unit) $ 3,232,000 Cost of goods sold Direct materials $ 400,000 Direct labor 704,000 Production supplies 416,000 Plant manager salary 200,000 1,720,000 Gross profit 1,512,000 Selling expenses Sales commissions 128,000 Packaging 240,000 Advertising 100,000 468,000 Administrative expenses Administrative salaries 250,000 Depreciation—office equip. 220,000 Insurance 190,000 Office rent 200,000 860,000 Income from operations $ 184,000 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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empo Company's fixed budget (based on sales of 16,000 units) for the first quarter reveals the following.
| Fixed Budget | ||||||||
| Sales (16,000 units × $202 per unit) | $ | 3,232,000 | ||||||
| Cost of goods sold | ||||||||
| Direct materials | $ | 400,000 | ||||||
| Direct labor | 704,000 | |||||||
| Production supplies | 416,000 | |||||||
| Plant manager salary | 200,000 | 1,720,000 | ||||||
| Gross profit | 1,512,000 | |||||||
| Selling expenses | ||||||||
| Sales commissions | 128,000 | |||||||
| Packaging | 240,000 | |||||||
| Advertising | 100,000 | 468,000 | ||||||
| Administrative expenses | ||||||||
| Administrative salaries | 250,000 | |||||||
| 220,000 | ||||||||
| Insurance | 190,000 | |||||||
| Office rent | 200,000 | 860,000 | ||||||
| Income from operations | $ | 184,000 | ||||||
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.
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