Ainsley Witt Limited manufactures old-fashioned dolls houses. The manufactur¬ ing process is labour intensive and involves a cost of £54 per house. Variable materials costs are £22 per house, and in addition the company pays a royalty per house manufactured of £1 to the designer.

The company's usual level of fixed costs is £125 000 per year. In an average year about 2400 dolls houses will be produced. Ainsley Witt's sales manager has suggested that the company should carry out an exercise to compare the current selling price of £150 for a dolls house with a cost-plus calculation, based upon a target mark-up on cost of 23%.

Calculate the difference between the current selling price and a selling price based upon the cost-plus calculation.