Business 9609 · AS & A Level · Location and scale

Location and scale — practice question

(a)[4]

Using Table 1.3, calculate the accounting rate of return (ARR) for location X.

(b)[12]

Evaluate which location OV should choose to build its factory.

Worked solution & mark scheme

This 16-mark question has a full step-by-step worked solution and mark scheme. One marking point: The correct ARR response is 25% (ARR = Average profit / average investment × 100).

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