Tempo Company's fixed budget (based on sales of 7,000 units) for the first quarter reveals the following.
Fixed Budget
Sales (7,000 units × $400 per unit) $ 2,800,000
Cost of goods sold
Direct materials $ 280,000
Direct labor $ 490,000
Production supplies $ 175,000
Plant manager salary $ 65,000 1,010,000
Gross profit 1,790,000
Selling expenses
Sales commissions 140,000
Packaging 154,000
Advertising 125,000 419,000
Administrative expenses
Administrative salaries 85,000
Depreciation—office equip. 35,000
Insurance 20,000
Office rent 36,000 176,000
Income from operations $ 1,195,000

(1) Compute the total variable cost per unit.
(2) Compute the total fixed costs.
(3) Compute the income from operations for sales volume of 6,000 units.
(4) Compute the income from operations for sales volume of 8,000 units.



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