emand in November is budgeted to be 11,025 units. What is Gasherbrum plc's budgeted gross profit for November?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter7: Budgeting
Section: Chapter Questions
Problem 7EB: Each unit requires direct labor of 4.1 hours. The labor rate is $13.75 per hour and next years...
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Gasherbrum plc are preparing their budget for the coming year.
Budgeted selling unit price is £30. Budgeted material cost for each unit is 50% of the selling price, while budgeted labour cost is 20% of the selling price. Each unit is
expected to incur direct expenses of £1 on top of the budgeted materials and labour costs.
Distribution and selling costs are budgeted to be £9,000 per annum and budgeted administration costs are £1,200 per month.
Demand in November is budgeted to be 11,025 units. What is Gasherbrum plc's budgeted gross profit for November?
O £87,450
O £88,200
O £86,250
O £99,225
Transcribed Image Text:Gasherbrum plc are preparing their budget for the coming year. Budgeted selling unit price is £30. Budgeted material cost for each unit is 50% of the selling price, while budgeted labour cost is 20% of the selling price. Each unit is expected to incur direct expenses of £1 on top of the budgeted materials and labour costs. Distribution and selling costs are budgeted to be £9,000 per annum and budgeted administration costs are £1,200 per month. Demand in November is budgeted to be 11,025 units. What is Gasherbrum plc's budgeted gross profit for November? O £87,450 O £88,200 O £86,250 O £99,225
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