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.)