European International has 3 separate business units in the following countries. Data for each of the business units is given
below:
France
Spain
Italy
Selling price per
£35
£38
£42
unit
Manufacturing
£4,000 per month
£3,500 per month
£5,000 per month
cost
plus £17 per unit
plus £18 per unit
plus £20 per unit
Administrative
£2,500 per month
£2,900 per month
£3,500 per month
expense
plus £2.50 per unit
plus £2.90 per unit
plus £3.50 per unit
Sales
15% of sales
16% of sales
20% of sales
commissions
Advertising
expense
£2,000 per month
£3,000 per month
£2,000 per month
If the business unit in France expects to produce and sell 5,000 units next month, the expected operating profit would be: