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Aleksandr-060686 [28]
3 years ago
5

Dean, the president of Billing & Credit Company, promises to pay his employee Ewing, who is dangerously obese, $10 for every

pound that he loses within the next eleven months. Ewing agrees, diets and exercises, loses 154 pounds, and asks Dean for $1,540. Dean refuses to pay, saying that he does not remember the promise, but that even if he did make it, there was no consideration, and Ewing’s improved health is a sufficient benefit for his effort and sacrifice. Ewing files a suit against Dean. In whose favor is the court likely to rule, and why?
Business
1 answer:
Lunna [17]3 years ago
8 0

Answer: In Favour of Ewing.

Explanation:

When Dean made that promise, he got into a contract with Ewing.

Now for a contract to be enforceable, 4 components must be satisfied. These components are, Agreement, Capacity (mental), Consideration and Legality.

From the above text we can tell that this is therefore a valid contract because both of them agreed to the proposal and were both of sound mind when they did. There was a Consideration ( the benefit in the contract) of $10 per pound and this contract is legally sound so this is a valid contract.

Ewing has fulfilled his side of the bargain and is entitled to his reward or payment.

Dean's claim that Ewing’s improved health is a sufficient benefit for his effort and sacrifice which indeed is a benefit, should not be considered sufficient because it was not agreed upon as a term in the contract.

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lisov135 [29]

Answer:

Accounts                                                                 Debit($)       Credit($)

Cash                                                                            10,750

Common Stock                                                                                10,750

<u>Being cash invested for common stock</u>

<u> in the business</u>

Office Supplies                                                           312

Cash                                                                                                  312

<u>Being office supplies purchased with cash</u>

Office Equipment                                                       5,945

Account Payable                                                                            5,945

<u>Being office equipment purchased on credit</u>

Cash                                                                             1,268

Fees Earned                                                                                     1,268

<u>Being cash received on service rendered </u>

<u>to a customer</u>

Account Payable                                                       5,945

Cash                                                                                                5,945

<u>Being settlement of amount owned for </u>

<u>office equipment</u>

Account receivable                                                   2,279

Fees Earned                                                                                    2,279

<u>Being recognition of amount owned </u>

<u>by customer</u>

Rent Expense                                                           525

Cash                                                                                                 525

<u>Being cash paid for rent</u>

Cash                                                                         957

Account Receivable                                                                       927

<u>Being cash collected for account receivable</u>

Dividend                                                                   900

Cash                                                                                             900

<u>Being dividend paid with cash</u>

Explanation:

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Entries on the debit side are assets or expenses while entries on the credit sides are liabilities, equity and income.

Journal also has a narration for each accounting event to provide information about the entry.

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Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil f
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Answer:Profit margin = 29.94%

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Return on investment (ROI) =15.09%

Explanation:

Given

Sales for the year =  $ 17,700,000

Net Operating Income =  $ 5,300,000

Average Operating Assets =  $ 35,100,000

a)Profit margin = (Net operating income/Net sales ) x 100%

= $5,300,000/$17,700,000 x 100%  = 29.94%.

This shows that the Alyeska Services company has ability to turn income to profit by  29.94%

b.  Asset Turnover =  Total Sales/ Average Total Assets  = $17,700,000/$35,100,000 = 0.50

c. Return on investment (ROI) =Net income/Total investment  x 100%

 = $ 5,300,000/ $ 35,100,000 x 100% =15.09%

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victus00 [196]

Answer:

Variable manufacturing overhead rate variance= $465 unfavorable

Variable overhead efficiency variance= $150 unfavorable

Explanation:

Giving the following information:

Standard:

1.5 standard hours per Zippy at $3.00 per direct labor hour

Actual:

1,550 hours to make

1,000 Zippies

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<u>To calculate the variable overhead rate variance, we need to use the following formula:</u>

Variable manufacturing overhead rate variance= (standard rate - actual rate)* actual quantity

Actual rate= 5,115/1,550= $3.3

Variable manufacturing overhead rate variance=  (3 - 3.3)*1,550

Variable manufacturing overhead rate variance= $465 unfavorable

<u>To calculate the variable overhead efficiency variance, we need to use the following formula:</u>

Variable overhead efficiency variance= (Standard Quantity - Actual Quantity)*Standard rate

Variable overhead efficiency variance= (1.5*1,000 - 1,550)*3

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