Tempo Company's fixed budget for the first quarter of calendar year 2013 reveals the following.
Sales (16,000 units) $3,424,000
Cost of goods sold
Direct materials $379,040
Direct labor 679,360
Production supplies 429,760
Plant manager salary 179,040
1,667,200
Gross profit 1,756,800
Selling expenses
Sales commissions 124,480
Packaging 238,080
Advertising 100,000
462,560
Administrative expenses
Administrative salaries 229,040
Depreciation-office equip. 199,040
Insurance 169,040
Office rent 179,040
776,160
Income from operations $518,080
Prepare flexible budgets that show variable costs per unit, fixed costs, and three different flexible budgets for sales volumes of 14,000, 16,000, and 18,000 units.