The International Company Makes and Sells Only One Product

question 10

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 budgeted disbursements (including depreciation) for selling and administrative expenses for November total £154,180, how many units does the Newcastle Division plan to sell in November (rounded to the nearest whole unit)

• A)51,000 units.
• B)31,000 units.
• C)28,000 units.
• D)27,800 units.

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