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European International Has 3 Separate Business Units in the Following

Question 2

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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:  France 5pain italy  Selling price per unit £35£38£42 Manufacturing cost £4,000 per month plus £17 per £3,500 per month plus £18 per £5,000 per month plus £20 per  unit  unit  unit  Administrative £2,500 per month plus £2.50£2,900 per month plus £2.90£3,500 per month plus £3.50 expense  per unit  per unit  per unit  Sales commissions 15% of sales 16% of sales 20% of sales  Advertising expense £2,000 per month £3,000 per month £2,000 per month \begin{array}{|l|l|l|l|}\hline&\text { France } & 5 p \mathrm{a} i n & \text { italy }\\\hline \text { Selling price per unit } & £ 35 & £ 38 & £ 42 \\\hline \text { Manufacturing cost } & £ 4,000 \text { per month plus } £ 17 \text { per } & £ 3,500 \text { per month plus } £ 18 \text { per } & £ 5,000 \text { per month plus } £ 20 \text { per } \\& \text { unit } & \text { unit } & \text { unit } \\\hline \text { Administrative } & £ 2,500 \text { per month plus } £ 2.50 & £ 2,900 \text { per month plus } £ 2.90 & £ 3,500 \text { per month plus } £ 3.50 \\\text { expense } & \text { per unit } & \text { per unit } & \text { per unit } \\\hline \text { Sales commissions } & 15 \% \text { of sales } & 16 \% \text { of sales } & 20 \% \text { of sales } \\\hline \text { Advertising expense } & £ 2,000 \text { per month } & £ 3,000 \text { per month } & £ 2,000 \text { per month }\\\hline\end{array}
-If the business unit in France plans to produce and sell 4,000 units next month, the expected gross margin would be


A) £41,000.
B) £37,000.
C) £68,000.
D) £57,500.

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