Options:
- Smith Bus should be excused from performance under the clause for the rights on improper delivery
- Smith Bus should not be excused from performance because it did not act in good faith
- Smith Bus should be excused from performance under the test of commercial impracticability
- Smith Bus can exercise its right of anticipatory repudiation
Answer:
Correct answer is Option c.
<u>Smith Bus should be excused from performance under the test of commercial impracticability
</u>
Explanation:
In this case, Smith cannot fulfil the contract obligation due to an unforeseen event. Hence, Commercial impracticability shall apply.
Answer:
There will be a difference in the income .
Absorption costing income will be lower as it transfers all the fixed costs to the ending inventory.
Variable costing income will be higher as it does not transfer the fixed costs to the ending inventory.
The difference will be of $ 104000
Explanation:
Increase in units 8000
Variable Fixed
Unit manufacturing costs of the period $24.00 $10.00
Unit operating expenses of the period 8.00 3.00
Total Unit Costs $ 32.00 $ 13.00
The net operating income under variable costing for the year will be $ 13* 8000= $ 104000 Lower than the net operating income under absorption costing. This is because the all fixed costs will be treated as period cost rather than product costs.
In variable costing the ending inventory will be $104000 lower than the ending inventory under absorption costing because the fixed costs will not be allocated to products.
Under variable costing, the units in the ending inventory will be costed at $32 each.Under absorption costing, the units in the ending inventory will be costed at $32+ $ 13= $ 45 each.
Answer:
a) Get choosy with your fonts and use a font type that matches the company's branding scheme
b) Add a company logo to customer sales forms Use the standard template with no customization
c) Add a splash of color that matches the company's branding scheme
Explanation:
Brand recognition refers to the recognition of the company brand by identifying with the product tag line, logo, advertising, packaging, etc
It could be identified with the help of audio and video clip so that the people could aware of it
Now for building the brand recognition, the following attributes needed
1. Selection of font that matches with the branding
2. Added a logo also the standard template is required
3. Add color splashes
Answer:
<em>Gross Profit= Sales - Cost of Goods Sold</em>
Cost of Goods sold of 1 unit = $ 450,000/50,000
= $ 9
Cost of Goods Sold of 45,000 units = 45,000 * $ 9
= $ 405,000
<em>Gross Profit of 45,000 units = Sales revenue of 45,000 units - Cost of Goods sold of 45,000 units</em>
= 45,000 * $ 15 (Per Unit rate) - $ 405,000
= $ 675,000 - $ 405,000
= <em>$ 270,000 i.e. option b</em>
Explanation:
Refer to the answer.
Answer:
$326,400
Explanation:
The breakeven point is the number of units of a product a company must sell for its total revenue to be equal to its total cost. The cost elements are fixed and variable. At breakeven, profit/loss is zero hence revenue or sales is equal to cost.
From the information given,
Variable cost per unit = $ 187,500/50,000
= $3.75
Sales per unit = $500,000/50,000
= $10
let the number of units sold at breakeven point be x
10x - 3.75x - 204,000 = 0
6.25x = 204,000
x = 32,640
Breakeven sales = 32,640 * $10
= $326,400
