Tempo Company's fixed budget (based on sales of 12,000 units) for the first quarter reveals the following. Fixed Budget Sales (12,000 units × $206 per unit) $ 2,472,000 Cost of goods sold Direct materials $ 288,000 Direct labor 504,000 Production supplies 312,000 Plant manager salary 88,000 1,192,000 Gross profit 1,280,000 Selling expenses Sales commissions 84,000 Packaging 180,000 Advertising 100,000 364,000 Administrative expenses Administrative salaries 138,000 Depreciation—office equip. 108,000 Insurance 78,000 Office rent 88,000 412,000 Income from operations $ 504,000 (1) Compute the income from operations for sales volume of 10,000 units. (2) Compute the income from operations for sales volume of 14,000 units.

Tempo Company's fixed budget (based on sales of 12,000 units) for the first quarter reveals the following. Fixed Budget Sales (12,000 units × $206 per unit) $ 2,472,000 Cost of goods sold Direct...

Tempo Company's fixed budget (based on sales of 12,000 units) for the first quarter reveals the following.

	Fixed Budget
Sales (12,000 units × $206 per unit)				$	2,472,000
Cost of goods sold
Direct materials		$	288,000
Direct labor			504,000
Production supplies			312,000
Plant manager salary			88,000		1,192,000
Gross profit					1,280,000
Selling expenses
Sales commissions			84,000
Packaging			180,000
Advertising			100,000		364,000
Administrative expenses
Administrative salaries			138,000
Depreciation—office equip.			108,000
Insurance			78,000
Office rent			88,000		412,000
Income from operations				$	504,000

(1) Compute the income from operations for sales volume of 10,000 units.

(2) Compute the income from operations for sales volume of 14,000 units.

Jun 06, 2022

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Tempo Company's fixed budget (based on sales of 12,000 units) for the first quarter reveals the following. Fixed Budget Sales (12,000 units × $206 per unit) $ 2,472,000 Cost of goods sold Direct...

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