AFB Systems is considering a new marketing campaign that will require the additi

Question

AFB 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 RM8,000 per month. The software license costs RM1,000 per month. The rent for the building is RM4,000 per month. AFB's computer system is always on, so running the new software will not change the current monthly electric bill of RM900. The incremental expenses for the new marketing campaign are

Explanation / Answer

Office and electricity expenses remain the same

Incremental expenses include the salary of new programer and the software:

=8000+1000

=RM9000 per month

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