Answer:
(D) Both number of units produced and amount of direct materials used in production are correct.
Explanation:
Answer: The court will apply the predominant-purpose test to determine whether the predominant purpose of the contract was the sale of goods in which case the UCC would apply.
Explanation:
Based on the information given in the question, we should note that the court will apply the predominant-purpose test to determine whether the predominant purpose of the contract was the sale of goods in which case the UCC would apply.
We should note that under a predominant purpose test, it will apply when the transaction involved is Mena for goods sales and not for the service sales.
Answer:
C. Decrease by $7,000
Explanation:
Calculation to determine what company's overall operating income would Decrease by
Using this formula
Overall operating income =(Product X units*Contribution margin )-Fixed overhead eliminated
Let plug in the formula
Overall operating income=(5,000 units*$5)-$18,000
Overall operating income=$25,000-$18,000
Overall operating income=$7,000 Decrease
Therefore As a result of discontinuing Product X, the company's overall operating income would:Decrease by $7,000