Answer:
Average investment(denominator) = $113,000
Explanation:
<em>Annual rate of return is the average annual income as a percentage of average investment
. It is the proportion of the average investment that is earned, on the average, as annual income.</em>
Annual rate of return = annual net income/ average investment
Average investment =( Initial,cost + scrap value)/2
Average investment = (220,000 + 6,000)/2= $113,000
Average investment(denominator) = $113,000
Answer: A. No contribution can be made
Explanation:
Answer:
Unitary fixed cost= $36.36
Explanation:
Giving the following information:
Total fixed costs for Diamond Enterprises are $ 800,000. Total costs, including both fixed and variable, are $ 910,000 if 120,000 units are produced.
Unitary fixed cost= total fixed costs/ number of units
Unitary fixed cost= 800,000 / 220,000= $36.36
Answer:
trade diversion
Explanation:
Trade diversion results from changing an efficient supplier or trading partner for a not so efficient trading partner. This change usually results from trade agreements or customs unions like NAFTA (or USMCA) or the European Union that benefit less efficient producers.
Trade diversion results in concentrating production in countries with high opportunity costs that do not possess real comparative advantages, but rather political advantages.