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JW enterprises is considering a new marketing campaign that will require the add

ID: 2664222 • Letter: J

Question

JW enterprises 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 JW'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. JW's computer system is always on so running the new software will not change the current monthly electric bill of $900. The incremental expenses for the new marketing campaign are

a. $8,000 per month
b. $13,000 per month
c. $13,900 per month
d. $9,000 per month

Explanation / Answer

JW Enterprises 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 JW'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. JW's computer system is always on so running the new software will not change the current monthly electric bill of $900. The incremental expenses for the new marketing campaign are:

a. $8,000 per month
b.$ 13,000 per month
c. $13,900 per month
d. $9,000 per month

The only additional (incremental) costs will be the programmers salary and the software license ($8000 +$1000 = $9000).