European International Has 3 Separate Business Units in the Following
Question 18
Question 18
Multiple Choice
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 £2,000 per month 5pain£38£3,500 per month plus £18 per unit £2,900 per month plus £2.90 per unit 16% of sales £3,000 per month 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 -If the business unit in Italy expects to produce and sell 5,000 units next month, the expected net operating income would be
A) £41,250. B) £42,750. C) £42,000. D) £40,000.
Correct Answer:
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