MNCs OFten Attempt to Set Up Production in Locations Where

question 44

True/False

MNCs oFten attempt to set up production in locations where land and labor are expensive, because expensive factors of production indicate high demand.

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Definitions:

Margin Of Safety

A figure that indicates the possible decrease in sales that may occur before an operating loss results; may be expressed in terms of sales dollars, sales units, or percent of current sales.

Unit Selling Price

The price at which a single unit of a product or service is sold, not accounting for discounts or modifications.

Sales

The revenue generated from the sale of goods or services by a company during a particular period.

Unit Contribution Margin

The amount of revenue per unit sold that exceeds the variable costs involved in producing that unit.