Consult the Graph to Answer the Following Question

question 41

Essay

Consult the graph to answer the following question. You have been asked to recommend a location for a botanical garden that will be used to propagate rare plants from the city of Mérida in the Yucatán Peninsula. Two sites are being considered, one in Bogotá, Colombia, the other in Rio de Janeiro, Brazil. Which would you recommend for establishment of this garden? Briefly explain your answer.

---

Definitions:

Direct Expense

Direct expense refers to costs directly incurred in the manufacturing of a product or in providing a service, distinguishable by its direct association with specific business activities.

Indirect Expenses

Costs that are not directly attributable to the production of goods or services, such as administrative and marketing expenses.

Investment Center

A business unit within a company that is responsible for its own revenue, expenses, and investment of capital, often evaluated on its return on investment.

Residual Income

The net income an entity generates above its required rate of return or cost of capital.