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

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 licence 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/month
b/ $ 13,000/ month
c/ $ 13,900/month
d/ $9,000/ 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).

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