Tempo Company's fixed budget (based on sales of 16,000 units) for the first quarter reveals the following.Fixed BudgetSales (16,000 units x $215 per unit)Cost of goods sold$3,440,000$384,000672,000416,000184,000Direct materialsDirect laborProduction suppliesPlant manager salaryGross profitSelling expenses1,656,0001,784,000Sales commissions144,000224,000PackagingAdvertisingAdministrative expenses100,000468,000Administrative salaries234,000204,000174,000Depreciation-office equip.InsuranceOffice rent184,000796,000Income from operations$ 520,000(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.

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Tempo Company's fixed budget (based on sales of 16,000 units) for the first quarter reveals the following. Fixed Budget $3,440,000 Sales (16,000 units x $215 per unit) Cost of goods sold $384,000 672,000 416,000 184,000 Direct materials Direct labor Production supplies Plant manager salary Gross profit Selling expenses 1,656,000 1,784,000 144,000 224,000 100,000 Sales commissions Packaging Advertising Administrative expenses Administrative salaries 468, 000 234,000 204,000 174,000 184,000 Depreciation-office equip. Insurance Office rent 796,000 Income from operations $ 520,000 (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.

Tempo Company's fixed budget (based on sales of 16,000 units) for the first quarter reveals the following. Fixed Budget $3,440,000 Sales (16,000 units x $215 per unit) Cost of goods sold $384,000 672,000 416,000 184,000 Direct materials Direct labor Production supplies Plant manager salary Gross profit Selling expenses 1,656,000 1,784,000 144,000 224,000 100,000 Sales commissions Packaging Advertising Administrative expenses Administrative salaries 468, 000 234,000 204,000 174,000 184,000 Depreciation-office equip. Insurance Office rent 796,000 Income from operations $ 520,000 (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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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