Answer: The creditor will be able to recover $1,350
Explanation:
The amount that the creditor will be able to recover will be the contract price less the damages for the minor breach by the company.
In this case, the company finished all of the tasks except for the cleaning of the oven. Since this is minor with regards to the contract, the company will be seen to have performed its contract.
Since we are told the cost of finishing the job was 10% of the contract cost, this will be regarded as a minor breach, therefore, the owner of the condominium cannot avoid the payment of the price of the contract price. In this case, the creditor will be able to recover ($1500 - $150) = $1,350.
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
Option (D) is correct.
Explanation:
Given that,
Direct materials = $42,000
Direct labor = 63,000
Manufacturing overhead = 94,500
Selling expenses = 25,200
Administrative expenses = 23,100
Buckner & Jones produced and sold 2,060 units at a sales price of $131.25 each.
Total period expense:
= Selling expenses + Administrative expenses
= $25,200 + $23,100
= $48,300
Therefore, the total period expense was $48,300.
Answer:Economic rent-$320,000
Opportunity Cost-80,000
Explanation:
Economic rent is the extra amount or addition earned by a production resource here and in this context,Mr Kurt is the resource.In this scenario,the extra amount he earned as a professional golfer having quit engineering for it and thus had a step-up(addition) of $320,000.
While the opportunity cost which known as the alternative forgone in order in favour of another alternative in a decision process here is $80,000.In this case,he had to forego engineering job($80,000) and therefore concentrate on professional golfing which paid him more(400,000) not omitting the fact that he could have engaged in the two jobs at same time.
Answer:
C. that issuing debt requires interest and principal payments to be paid thereby reducing the potential of management to waste resources.
Explanation:
Free Cash Flow is the cash generated by an organisationafter it has accounted for the outflows to capital assets maintenance costs and operating activities. Free Cash flow is a measure of a company's profitability after non-cash expenses in the account statement have been deducted. It is the cash flow an organisation has when it has limited or no debt obligations in its portfolio
The Hypothesis of free cash flow states that an organisation with a large amount of free cash will display less financial or spending discipline compared with an organisation that has debts obligations to spend cash on.
Based on the hypothesis, it becomes essential for such organisations to issue debts so that as the legal obligations (debts, principal and interest) increases, the potential to waste money as a result of fre cash flow reduces.
