European International Has 3 Separate Business Units in the Following

question 40

Multiple Choice

European International has 3 separate business units in the following countries. Data for each of the business units is given below: $\begin{array}{|l|l|l|l|}\hline&\text { France } & 5 p \mathrm{a} i n & \text { italy }\\\hline \text { Selling price per unit } & £ 35 & £ 38 & £ 42 \\\hline \text { Manufacturing cost } & £ 4,000 \text { per month plus } £ 17 \text { per } & £ 3,500 \text { per month plus } £ 18 \text { per } & £ 5,000 \text { per month plus } £ 20 \text { per } \\& \text { unit } & \text { unit } & \text { unit } \\\hline \text { Administrative } & £ 2,500 \text { per month plus } £ 2.50 & £ 2,900 \text { per month plus } £ 2.90 & £ 3,500 \text { per month plus } £ 3.50 \\\text { expense } & \text { per unit } & \text { per unit } & \text { per unit } \\\hline \text { Sales commissions } & 15 \% \text { of sales } & 16 \% \text { of sales } & 20 \% \text { of sales } \\\hline \text { Advertising expense } & £ 2,000 \text { per month } & £ 3,000 \text { per month } & £ 2,000 \text { per month }\\\hline\end{array}$
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If the business unit in Italy plans to produce sell 3,000 units next month, the expected contribution margin would be

• A)£34,750.
• B)£30,300.
• C)£26,500.
• D)£56,250.

Understand the concept of programmed and nonprogrammed decisions and their application in organizational contexts.

Understand the constitutional powers and limitations regarding taxation and funding.

Comprehend the specific protections and rights guaranteed by the amendments within the Bill of Rights.

Grasp the principles and implications of the Commerce Clause on legislative authority.

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Definitions:

Periodic Inventory Method

An accounting approach where inventory is physically counted at specific intervals to determine the cost of goods sold and ending inventory levels.

Beginning Inventories

Beginning inventories are the value of a company's inventory at the start of an accounting period, serving as a basis for determining the cost of goods sold.

Ending Inventories

The final value of goods available for sale at the end of an accounting period, calculated through physical count or estimation.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material costs and direct labor.