The International Company Makes and Sells Only One Product

question 60

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

-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.

---

Definitions:

Planning Budget

A financial plan for a specific time period, outlining expected revenue, expenses, and resource allocations to achieve business goals.

Patient-Visits

A measure used in healthcare to indicate the number of times patients see a healthcare provider, physician, or use a service within a specific time frame.

Revenue

The cumulative revenue produced from the sale of products or services that are central to a company's main business activities.

Revenue Variance

The difference between the actual revenue earned and the budgeted or expected revenue.