Profit Planning. Next year's budget of a company shows:
Cost of goods sold. . . . . . . . . . . . . . . . . . . . . . . . . . . $1,050,000
Administrative expenses. . . . . . . . . . . . . . . . . . . . . . .
90,000
Sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,600,000
Financial expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . .
31,000
The ratio of sales to invested capital is 2 to 1. A satisfactory profit for the enterprise would be 15% on invested capital.
Required: The amount available for marketing expenses, not included in the above estimates, if the required profit is to be attained.