Reference no: EM131588434

Problem - Tempo Company's fixed budget for the first quarter of calendar year 2013 reveals the following.

Sales (18,000 units)     $ 3,672,000  

Cost of goods sold              

Direct materials $ 432,000           

Direct labor   763,920           

Production supplies   497,160           

Plant manager salary   232,000    1,925,080        

Gross profit       1,746,920  

Selling expenses              

Sales commissions   136,620           

Packaging   285,840           

Advertising   100,000    522,460          

Administrative expenses              

Administrative salaries   282,000           

Depreciation-office equip.   252,000            

Insurance   222,000           

Office rent   232,000    988,000        

Income from operations     $ 236,460          

Prepare flexible budgets that show variable costs per unit, fixed costs, and three different flexible budgets for sales volumes of 16,000, 18,000, and 20,000 units. (Round cost per unit to 2 decimal places.)