Scenario 4-1 in a Given Year,country a Exported $12 Million

question 64

Multiple Choice

Scenario 4-1 In a given year,country A exported $12 million worth of goods to country B and $6 million worth of goods to country C; country B exported $4 million worth of goods to country A and $7 million worth of goods to country C; and country C exported $5 million worth of goods to country A and $2 million worth of goods to country B.
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According to Scenario 4-1,country B is running a: ____ with country A and a ____ with country C.

• A)trade deficit with country A and a trade surplus with country C.
• B)trade surplus with both countries A and C.
• C)trade surplus with country A and a trade deficit with country C.
• D)trade deficit with voth countries A and C.
• E)balanced trade with country A and a trade deficit with country C.

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Definitions:

Operating Income

Earnings before interest and taxes (EBIT), a measure of a company's profitability from its core business operations.

Fixed Costs

Operating expenses of a business that remain constant regardless of the volume of production or sales.

Unit Contribution Margin

The amount each unit sold contributes towards covering fixed costs and generating profit, calculated as the selling price per unit minus the variable cost per unit.

Operating Income

Earnings before interest and taxes (EBIT), measuring a company's profit from its operational and regular business activities.