FB Systems is considering a new marketing campaign that will require the additio

Question

FB Systems is considering a new marketing campaign that will require the addition of a new computer programmer and new software. The programmer will occupy an office in AFB's current building and will be paid $8,000 per month. The software license costs $1,000 per month. The rent for the building is $4,000 per month. AFB's computer system is always on, so running the new software will not change the current monthly electric bill of $900. What are the incremental expenses for the new marketing campaign?

Explanation / Answer

The incremental expenses for the new marketing campaign are the salary of the programmer and the software license fees only. $8,000 + $1,000 = $9,000 per month.

We will not take into consideration the electricity bill and rent of building.

He is occupying little space in the already rented building.

Hope my solution solves your query.

Regards.

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