Answer:
a. $ 90,000 cost decrease
Explanation:
The computation in the change in the amount of differential cost is shown below:
= (Unit cost by ignoring the fixed cost) - (unit cost to manufacturing the purchase cost) × number of units purchased
= ($12 - $15) × 30,000 units
= $3 × 30,000 units
= $90,000 decrease
And the other information which is given in the question is not relevant. Hence, ignored it
Answer:
The correct answer is Through the franchise agreement, he can ensure that the new stores are operated according to his own standards.
Explanation:
The Franchise Agreement is a binding contract that sets out in detail the responsibilities and expectations for the franchisor and the franchisee.
You have to keep in mind that Franchise Agreements are written to be generally more advantageous for the franchisor. Once signed you are legally bound to uphold all the provisions of the Settlement, therefore it is essential that your attorney has reviewed the contract and explained everything correctly to you in plain language and not in specific terms that may not be easy to understand.
Before signing, if any verbal promises have been made, make sure they are included in writing in the Agreement. Once signed, the Franchise Agreement determines your relationship with the franchisor, and any disagreement or misunderstanding will be subject to the terms of the Agreement.
Since it is a binding contract, there are certain critical elements found in all business contracts and others that are unique to franchising. Here are some aspects of the contract that you and your lawyer should review carefully to make sure you understand all that it entails.
Answer:
Covenant.
Explanation:
A covenant in business context refers to a formal debt agreement between a lender and a company that specific actions will or will not be undertaken.
