The International Company makes and sells only one product. There are 2 divisions, one in France and one in Newcastle.
The company is in the process of preparing its Selling and Administrative Expense Budget for the last half of the year. The following budget data are available:
French Division Cost Structure

Newcastle Division Cost Structure

-All of these expenses (except depreciation) are paid in cash in the month they are incurred. If the Newcastle Division budgeted to sell an additional 2,000 units in July (27,000 in total), then the total budgeted selling and administrative expenses per unit sold for July is

A)£5.65.
B)£5.28.
C)£5.23.
D)£5.62.

Question

The International Company makes and sells only one product. There are 2 divisions, one in France and one in Newcastle.
The company is in the process of preparing its Selling and Administrative Expense Budget for the last half of the year. The following budget data are available:
French Division Cost Structure

Newcastle Division Cost Structure

-All of these expenses (except depreciation) are paid in cash in the month they are incurred. If the Newcastle Division budgeted to sell an additional 2,000 units in July (27,000 in total), then the total budgeted selling and administrative expenses per unit sold for July is

A)£5.65. 
B)£5.28. 
C)£5.23. 
D)£5.62.

Quizplus · Accepted Answer

The Answer of The International Company makes and sells only one product. There are 2 divisions, one in France and one in Newcastle.
The company is in the process of preparing its Selling and Administrative Expense Budget for the last half of the year. The following budget data are available:
French Division Cost Structure

Newcastle Division Cost Structure

-All of these expenses (except depreciation) are paid in cash in the month they are incurred. If the Newcastle Division budgeted to sell an additional 2,000 units in July (27,000 in total), then the total budgeted selling and administrative expenses per unit sold for July is

A)£5.65. 
B)£5.28. 
C)£5.23. 
D)£5.62.

The International Company Makes and Sells Only One Product