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nirvana33 [79]
3 years ago
15

Sterling, Inc. is a manufacturer of state-of-the-art computers. For the past ten years, Sterling has acquired all of its microch

ips from NoBugs Corporation, the only producer of chips meeting Sterling's high specifications. The relationship has been mutually profitable. Sterling could not have built its reputation as an industry leader without NoBugs's reliable and consistently high-quality products; Sterling's business has enabled NoBugs to grow rapidly while providing its investors with an attractive rate of return.
Some months ago, several of Sterling's computers exploded shortly after installation. Upon investigation, Sterling discovered that tiny imperfections in NoBugs's microchips had aggravated a dormant design defect in the computers, causing the explosions. Analysis of the chips indicated that they were indeed below specifications and that the imperfections were caused by a slight miscalibration of NoBugs's encoding equipment. NoBugs recalibrated the equipment and promptly resumed production of perfect chips.

Sterling's losses from the explosions - lost profits, out-of-pocket costs associated with compensating customers for the explosions, and injury to business reputation - are estimated to exceed $20 million. Sterling and NoBugs disagree on the amount of the loss for which NoBugs should be responsible. Sterling has a strong legal case for breach of contract against NoBugs. Sterling's CEO is considering a lawsuit. She asks you to prepare a report discussing litigation strategy and the advantages and disadvantages of litigation; and discussing pretrial planning should the company opt for litigation.

Write a discussion of litigation strategy
Business
1 answer:
AysviL [449]3 years ago
8 0

Answer:

Litigation strategy: Supplier N produces imperfect products, causing damage in business and market reputation of Company S. It is a clear case of negligence of N. The supplier should have more careful before supplying goods. The material should be checked before delivery. If it is not done, at least the company should be informed that the material is sent unchecked, so that the company can do the checking.

The supplier has done nothing, which creates a huge loss to the company. The business and relationship between the company and the supplier is not new. It is almost ten year

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Commodity futures contracts can be bought and sold on the open market for which reason
timama [110]

Answer:

Futures contracts are derivatives. Their price is derived from one or more underlying assets. Due to their nature as commodities, a buyer can agree to purchase at a predetermined price; and a seller can agree to sell that quantity at the agreed-upon price.

7 0
3 years ago
Jobs Inc. has recently started the manufacturer of Tri-Robo, a three-wheeled robot that can scan a home for fires and gas leaks
trapecia [35]

Answer:

Jobs Inc.

1. The offer should not be accepted.

2. The offer should be accepted.

Explanation:

a) Data and Calculations:

Units of Tri-Robos to be manufactured = 21,300

Costs of manufacturing:

Direct materials                                        $1,086,300

Direct labor ($39 per robot)                         830,700

Variable overhead ($5 per robot)                106,500

Allocated fixed overhead ($28 per robot) 600,000

Total                                                        $2,623,500

Unit cost = $123.17 ($2,623,500/21,300)

Price from Tiench Inc per unit = $113

Total offer price = $2,406,900 ($113 * 21,300)

                               Make           Buy     Net Income Increase (Decrease)

Direct materials    $1,086,300    $ $

Direct labor                830,700

Variable overhead     106,500

Fixed overhead          195,000

Purchased price                          2,406,900

Totals                    $2,218,500  $2,406,900 $188,400 Decrease

                                                                      Make           Buy    

Direct materials                                        $1,086,300

Direct labor ($39 per robot)                         830,700

Variable overhead ($5 per robot)                106,500

Allocated fixed overhead ($28 per robot) 600,000

Total                                                        $2,623,500 $2,406,900

Opportunity cost                                          375,000

Total                                                        $2,998,500 $2,406,900 $591,600

8 0
3 years ago
Connor Company produces speaker systems for cars. Estimated sales (in units) in January are 40,000; in February 37,000; and in M
Vera_Pavlovna [14]

Answer:

Our answer is E 114,420

Explanation:

Production budget:    

                                                 Jan   Feb            Mar

Budgeted sales units  40000   37000           34000

Add: Ending inventory        12950   11900  

Total requirement         52950   48900  

Less: Beginning inventory 14000    12950  

Budgeted production units 38950 35950  

Purchase budget of Box:    

                                               Jan           Feb  

Budgeted production  38950 35950  

Bx required per unit   3          3  

Total requirement of Boxes 116850 107850  

Add: Ending inventory         21570  

Total boxes needed  138420  

Less: Beginning inventory 24000  

Budgeted Purchase boxes 114420  

Answer is E. 114420    

5 0
3 years ago
Universal Travel Inc. borrowed $501,000 on November 1, 2021, and signed a 12-month note bearing interest at 7%. Interest is paya
Anon25 [30]

Answer:

Interest = $5,834.67

Explanation:

In November 1, the note bears 12 month = 7%

From November 1 to December 31 = 2 month

Hence for 2 month Interest = 2 * 7/12(%) = 1.1667%

Thus, interest = $500,100 * 1.1667%

Interest = 5834.6667

Interest = $5,834.67 approximately.

3 0
3 years ago
The price index in the first year is 110, in the second year is 100, and in the third year is 96. The economy experienced
Digiron [165]

Answer:

a. 9.1 percent deflation between the first and second years, and 4 percent deflation between the second and third years.

Explanation:

To calculate the rate of inflation/deflation, we have to divide by the oldest price index.

The second year, the variation of the price index was:

\Delta PI/PI=\frac{PI_2-PI_1}{PI_1}=\frac{100-110}{110}=\frac{-10}{110}=-0.909=-9.1\%

This means a 9.1% deflation.

The third year, the variation of the price index was:

\Delta PI/PI=\frac{PI_3-PI_2}{PI_2}=\frac{96-100}{100}=\frac{-4}{100}=-0.04=-4\%

This means a 4% deflation.

8 0
3 years ago
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