ocr: Data Media Maker Ltd maintains the same level of inventory at the end of each year. Ith has provided the tollowing intormation about costs anticipated for 1996, when it expects to sell 80,000 units of its product for £13.50 each. Production Costs: Direct materials 2.20 Direct labour 3.50 Manufacturing overhead 180,000 1.30 Selling expenses: Sales salaries & commissions 60,000 0.80 Advertising 50,000 Miscellaneous selling expense 10,000 General expenses: Office Salaries 80,000 Supplies 15,000 0.20 Miscellaneous general expense 5,000 £400,000 E8.00
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