A manufacturer has a target profit of $80 000 per annum. Last year the business made a profit of $\$ 60000$ when 10000 units were produced and sold. Contribution was $\$ 10$ per unit.
In order to achieve the target profit the plan is to increase advertising by $\$ 10000$ per annum. Variable cost per unit and selling price per unit will remain unchanged.
What will be the total fixed cost if this plan is carried out?
1 )
$\$ 20000$
2 )
$\$ 30000$
$\$ 40000$
4 )
$\$ 50000$
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