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ladessa [460]
3 years ago
10

Adel wrote Abdullah, "I will sell you my house and lot at 419 West Lombard Street, San Francisco, California for $950,000 payabl

e upon
merchantable deed, deal to be completed within 60 days of the date of your acceptance." Assuming that Adel's letter contains terms which,
are deemed sufficiently certain and definite, which of the following statements is correct?
Select one:
a. Adel's letter is not an offer unless Abdullah thought Adel intended to make an offer.
b. Adel's letter is an offer if a reasonable person with full knowledge of the circumstances would be justified in thinking it was intended as an
offer.
C. Adel's letter is not an offer unless both Adel and Abdullah considered it as an offer.
d. Adel's letter is not an offer unless Adel intended it to be an offer.
Business
1 answer:
enyata [817]3 years ago
3 0

Adel's letter is not an offer unless both Adel and Abdullah considered it as an offer.

Explanation:

In the context given above is an offer if the letter is accepted by both the parties as an offer. Here Adel is writing a letter where he wants to sell his house $950000 payable upon merchant deed and this deal has to be completed within 60 days the day when it was accepted. In this letter he is also mentioning that he wants to sell the house to Abdullah. Hence this letter becomes a deal when both of them accept it from their parts.

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Piedmont Company segments its business into two regions—North and South. The company prepared the contribution format segmented
pychu [463]

Answer:

Piedmont Company

1. Computation of the Companywide break-even point:

Break-even point = Fixed Cost/Contribution per margin

= $215,000/$27 = 7,963 units

2. Computation of the break-even point in dollar sales for the North region:

Break-even point in dollar sales = Fixed Costs/Contribution margin percentage

= $107,500/30% = $358,333

3. Computation of the break-even point in dollar sales for the South region:

= $107,500/60% = $179,1667

Explanation:

a) Data

Piedmont Company Contribution format segmented income statement as shown:

                                      Total Company            North             South

Sales                                 $ 675,000              $ 450,000     $ 225,000

Variable expenses              405,000                  315,000           90,000

Contribution margin           270,000                  135,000          135,000

Traceable fixed expenses  150,000                   75,000            75,000

Segment margin                 120,000               $ 60,000         $ 60,000

Common fixed expenses    65,000                  32,500             32,500

Net operating income      $ 55,000                $27,500           $27,500

NB: The common fixed expenses must be shared in some way to calculate the break-even points.

b) Total fixed costs:

Company-wide = $215,000 ($150,000 + 65,000)

North = $107,500 ($75,000 + 32,500)

South = $107,500 ($75,000 + 32,500)

c) We assume that the sales unit of 5,000 each for the two regions.  Total units = 10,000

d) Contribution per margin:

Company-wide = $270,000/10,000 = $27

North = $135,000/5,000 = $27

South = $135,000/5,000 = $27

e) Contribution margin percentage:

= Contribution/Sales x 100

Company-wide = $270,000/$675,000 x 100 = 40%

North = $135,000/$450,000 x 100 = 30%

South = $135,000/$225,000 x 100 = 60%

f) The break-even point is the quantity of sales that must be achieved for the fixed costs to be fully covered and no profit or loss is recorded.  It is the point at which fixed costs are equal to the contribution.  The contribution is the difference between the sales value and the variable costs.

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What refers to the amount of a product offered for sale at all possible prices in a market
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Law of supply............
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The following situations suggest a strength or a weakness in internal control. Identify each as a strength or weakness​, and giv
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Answer: Options A and C are strengths while options B and D are weaknesses. See explanation below.

Explanation:

a. All employees must take at least five consecutive days off each year.

This is a strength in internal control. This would help to maintain stability in operational process and ensure leave days are effectively utilized. It also prevents staff from taking the leave days in piecemeal and sporadic manner thereby disrupting the operational process and causing team instability. It is also used to ensure leave days are promptly utilised and well accounted for.

b. The accounting department orders merchandise and approves invoices for payment.

This is a weakness in internal control. There should be a check and balance in this regard. In some organizations, proper scrutiny of the vendor and invoice is done by the Procurement Unit and the Expense Control Unit respectively. Even within the accounting department, there is approval hierarchy. Also, the unit within accounting department that is making the order should not be the one to approve the transaction.

c. Cash received over the counter is controlled by the sales​ clerk, who rings up the sale and places the cash in the register. The daily sales are recorded in the accounting records by the accounting department.

This is a strength in internal control as it ensures checks and balances. Fraud and error can be detected through this means. The accounting department should verify the transactions to the relevant supporting document before recording the transaction in the system.

d. The officer who signs checks need not examine the payment packet because he is confident the amounts are correct.

This is a weakness in internal control in the sense that checks signed by the officer is binding in the court of law. The officer cannot claim ignorance if anything goes wrong. There is therefore a need for proper scrutiny and relevant questions asked before checks are signed.

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How to calculate the free cash flow of the firm (also referred to as the firm’s free cash flow) directly?
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Answer:

Explanation:

The formula to compute the free cash flow of the firm is shown below:

= EBIT × (1 -Tax Rate) + Depreciation & Amortization - Change in Net Working Capital - net capital Expenditure

In this we deduct the changes in net capital and net capital expenditure and added the depreciation and amortization expenses to the Earning after tax so that the correct amount can be computed

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4 years ago
Orlando has a loan with an effective interest rate of 7.918%, compounded annually. Which of the following must be true?
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The true statement is that in the effective rate formula, n is equal to one. Compound interest is the interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or a loan. It is calculated using the formula 
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8 0
3 years ago
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