Answer:
Check the following explanation
Explanation:
a) Usually a contract has the following elements:
Offer
.
Acceptance
.
Consideration
.
Intention to create a legal relationship
.
In the given case, the intention to create a legal relationship is missing. Though Study had sent a written legal contract to Burrow to affirm the contract, Burrow did not show any interest regarding the same. Hence Burrow can’t be sued for breach of contracts. Moreover the confirmation letter sent by Study does not qualify under the Merchant Memo Rule as the involved parties are not merchants. Burrow can use the terms of UCC for his favour. The UCC states that any contract with value more than $500 must be in writing. As the involved amount in this case is $1300, hence this case does not qualify as a contract under UCC.
b) If Study and Burrow were merchants, then the Merchant Memo Rule gets applicable. Then in that case, if 2 merchants enter into an oral contract, which is worth $500 or more and one of the merchant sends a written confirmation for the same, then a contract will be considered enforceable. In such a case, Burrow will be held liable for breach of contract and can be sued by Study.
Answer:
Sales 950,000
Less: Relevant cost:
Variable expenses 380,000
Avoidable fixed manufacturing expenses 217,000
Avoidable fixed selling and administrative expenses 178,000
Contribution 175,000
The total profit of Furrow Corporation reduces by $175,000 if the product is discontinued.
Explanation:
In this question, there is need to determine contribution, which is the excess of sales over relevant costs. Relevant costs are comprised of variable cost and avoidable fixed costs. The product should not be discontinued since the contribution is positive. Deleting a product with positive contribution reduces the total profit of the company by the amount of positive contribution.
Answer:
$66,667
Explanation:
Contribution margin = Sales Revenue - Variable cost = 240000-60000 = 180000
Percentage of contribution margin = Contribution margin / sales revenue = 180000 / 240000 = 75%
Breakevent point in total sales = Fixed costs / Percentage of contribution margin
= 50000/0.75 = $66,667
Answer:
The correct answer is option a and c.
Explanation:
The fed cannot control the money supply up to a great extent in the real world. This is because the feds can control the amount of required reserves that a commercial bank holds. But they cannot control the amount of excess reserves that a bank decides to hold which affects the money supply.
At the same time, the feds cannot control the amount of money that the households decide to hold as currency which also affects the money supply.
The amount of excess reserves a bank decides to hold affects the deposit-reserve ratio. While the amount of money that households decide to hold affects the currency deposit ratio. Both of these ratios affect the money supply.
