Fred produces top of the range dolls. He is preparing his budget for the coming year. Budgeted selling price for each doll is £30. Budgeted materials cost for each doll is 50% of selling price while budgeted labour cost is 20% of selling price. Each doll is expected to incur direct expenses of £1 on top of the budgeted materials and labour costs. Equipment depreciation is budgeted to be £9,000 per annum and Fred's budgeted administration expenses are £1,200 per month. Demand in September is budgeted to be 10,000 dolls with demand rising to 10,500 dolls in October and 11,025 in November. What is Fred's budgeted gross profit for November?

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The Answer of Fred produces top of the range dolls. He is preparing his budget for the coming year. Budgeted selling price for each doll is £30. Budgeted materials cost for each doll is 50% of selling price while budgeted labour cost is 20% of selling price. Each doll is expected to incur direct expenses of £1 on top of the budgeted materials and labour costs. Equipment depreciation is budgeted to be £9,000 per annum and Fred's budgeted administration expenses are £1,200 per month. Demand in September is budgeted to be 10,000 dolls with demand rising to 10,500 dolls in October and 11,025 in November. What is Fred's budgeted gross profit for November?

Fred Produces Top of the Range Dolls