The International Company Makes and Sells Only One Product

question 8

Multiple Choice

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

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All of these expenses (except depreciation) are paid in cash in the month they are incurred. If the French Division budgeted to sell 25,000 units in July, then the total budgeted selling and administrative expenses per unit sold for July is

• A)£2.65
• B)£3.28
• C)£5.93
• D)£5.45

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Definitions:

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A type of respiration that occurs in the absence of oxygen, producing energy by breaking down glucose without using oxygen.

Psychological Fatigue

A state of mental weariness and decreased efficiency resulting from prolonged periods of cognitive activity, often leading to decreased performance and motivation.

ATP Reserves

The stockpile of adenosine triphosphate in cells, available for immediate use as an energy source.

Acetylcholine

A neurotransmitter involved in many functions of the body, including muscle control, heartbeat, and brain processing.