The International Company makes and sells only one product. There are 2 divisions, one in France and one in Newcastie.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 avalableFrench Division Cost StructureVariable CostMonthlyFixed CostPer Unit SoldSales CommissionsShippingAdvertisingExecutive SalarlesDepreciation on Office EquipmentOther£0.80£1.20£0.30£15,000E35,000£12,000£0.35£20.000Newcastle Division Cost StructureVariable CostMonthlyFixed CostPer Unit Sold£0.90Sales CommissionsShippingAdvertisingExecutive SalariesDepreciation on Office Equipment£0.80£0.60£5,000£40.000£18.000lotherCO 80E5,000All of these expenses lexceot depreclation) are paid in cash in the month thev are Incurred, If the French Division budoeted to sell 27000 units in Julv instead of All of these expenses fexcept depreciation) are paid in cash in the month they are incurred. If the French Division budgeted to sel 270o0 unts in Aly stead of25.000 units, then the total budgeted selling and administrative expenses would increase byMultiple ChoiceE6.000S2.0001500E5300.

Selling and administrative expenses budget help in determining the estimated selling and…

Variable Cost Monthly Per Unit Sold Fixed Cost Sales Commissions Shipping Advertising Executive Salaries Depreciation on Office Equipment Other £0.80 £1.20 £0.30 £15,000 E35,000 £12.000 £20.000 E0.35 Newcastle Division Cost Structure Monthly Fixed Cost Variable Cost Per Unit Sold £0.90 £0.80 Sales Commissions Shipping Advertising Executive Salaries Depreciation on Office Equipment £5.000 640.000 £18,000 £5,000 £0.60 Other £0.80

Variable Cost Monthly Per Unit Sold Fixed Cost Sales Commissions Shipping Advertising Executive Salaries Depreciation on Office Equipment Other £0.80 £1.20 £0.30 £15,000 E35,000 £12.000 £20.000 E0.35 Newcastle Division Cost Structure Monthly Fixed Cost Variable Cost Per Unit Sold £0.90 £0.80 Sales Commissions Shipping Advertising Executive Salaries Depreciation on Office Equipment £5.000 640.000 £18,000 £5,000 £0.60 Other £0.80

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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