Question: European International has 3 separate business units in the following countries. Data for each of the business units is given below: Selling price per
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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