European International has 3 separate business units in the following countries. Data for each of the...
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European International has 3 separate business units in the following countries. Data for each of the business units is given below: Selling price per unit Manufacturing cost Administrative expense Sales commissions Advertising expense France £35 £4,000 per month plus £17 per unit £2,500 per month plus £2.50 per unit 15% of sales Spain £38 £3,500 per month plus £18 per unit £2,900 per month plus £2.90 per unit 16% of sales Italy £42 £5,000 per month plus £20 per unit £3,500 per month plus £3.50 per unit 20% of sales £2,000 per month £3,000 per month £2,000 per month If the business unit in France expects to produce and sell 5,000 units next month, the expected operating profit would be: European International has 3 separate business units in the following countries. Data for each of the business units is given below: Selling price per unit Manufacturing cost Administrative expense Sales commissions Advertising expense France £35 £4,000 per month plus £17 per unit £2,500 per month plus £2.50 per unit 15% of sales Spain £38 £3,500 per month plus £18 per unit £2,900 per month plus £2.90 per unit 16% of sales Italy £42 £5,000 per month plus £20 per unit £3,500 per month plus £3.50 per unit 20% of sales £2,000 per month £3,000 per month £2,000 per month If the business unit in France expects to produce and sell 5,000 units next month, the expected operating profit would be:
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Answer rating: 100% (QA)
Sales 500042 210000 Total fixed cost 5000 3500 2000 1... View the full answer
Related Book For
Statistics Principles and Methods
ISBN: 978-0470904114
7th edition
Authors: Richard A. Johnson, Gouri K. Bhattacharyya
Posted Date:
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