The International Company Makes and Sells Only One Product

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 French Division budgeted to sell an additional 2,000 units in July (27,000 in total) , then the total budgeted selling and administrative expenses would increase by

A) £2,000.
B) £6,200.
C) £6,000.
D) £500.