One reason U.S. companies are looking globally for incremental sales growth opportunities is that over two-thirds of the world's purchasing power is outside of the U.S.

Rosewood Corporation produces a single product. The following cost structure applied to its first year of operations: Variable costs: SG&A $2 per unit Production $4 per unit Fixed costs (total cost incurred for the year): SG&A $14,000 Production $20,000 Refer to Rosewood Corporation. Assume for this question only that during the current year Rosewood Corporation manufactured 5,000 units and sold

3,800 . There was no beginning or ending work-in-process inventory. How much larger or smaller would Rosewood Corporation's income be if it uses absorption rather than variable costing? a. The absorption costing income would be $6,000 larger. b. The absorption costing income would be $6,000 smaller. c. The absorption costing income would be $4,800 larger. d. The absorption costing income would be $4,000 smaller.

The NAFTA seeks to eliminate trade barriers among ________

a. all members of the European common market. b. United States and Japan. c. all members of the United Nations. d. United States, Canada, and Mexico.