The component of GDP that includes net exports and business investment will be affected If the German manufacturer builds a new factory to produce volkswagens in pennsylvania.
<h3>What are components of gross domestic product?</h3>
In economics, the components of gross domestic product includes the personal consumption, business investment, government spending and net exports.
Hence, the component of GDP that includes net exports and business investment will be affected by the decision.
Read more about gross domestic product
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Answer:
The preparation is presented below:
Explanation:
The preparation of the income statement for China Imports in the contribution margin format is shown below
Sales (7,500 units × $18) $135,000
Less: Variable cost (7,500 units × $10) ($75,000)
Contribution margin $60,000
Less: Fixed expenses per month (46,000)
Net operating income $14,000