In forward and futures contracts, the risk of non-fulfillment of contract terms is most likely borne by <u>both parties</u><u> to the contract</u>.
<h3>What are forward and futures contracts?</h3>
The difference between a forward and futures contract lies in their establishment.
A forward contract is a personal arrangement traded over the counter whereas, a futures contract is a standardized contract made through an established exchange.
Thus, in forward and futures contracts, the risk of non-fulfillment of contract terms is most likely borne by <u>both parties</u><u> to the contract</u>.
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Answer:
Apple contribution margin
$ 300 per unit
Apple Break even point:
$ 120 units
Google contribution margin
$ 200
BEP
$ 50
Explanation:
![\frac{Fixed\:Cost}{Contribution \:Margin} = Break\: Even\: Point_{units}](https://tex.z-dn.net/?f=%5Cfrac%7BFixed%5C%3ACost%7D%7BContribution%20%5C%3AMargin%7D%20%3D%20Break%5C%3A%20Even%5C%3A%20Point_%7Bunits%7D)
<em><u>Where:</u></em>
![Sales \: Revenue - Variable \: Cost = Contribution \: Margin](https://tex.z-dn.net/?f=Sales%20%5C%3A%20Revenue%20-%20Variable%20%5C%3A%20Cost%20%3D%20Contribution%20%5C%3A%20Margin)
Apple contribution margin
550 - 250 = 300 per unit
Apple Break even point:
36,000 / 300 = 120 units
Google contribution margin
470 - 270 = 200
BEP
10,000 / 200 = 50
You are charged an early termination fee.
Explanation:
When you sign a contract you will have to see if y<u>ou are viable to pay an early termination fee in case you decide to terminate a contract</u> in between and if so how much it will cost to do so.
<u>There are no other legal obligations in place usually unless directly specified in the service contract. </u>
Usually the fee is to cover for the cost procured or that will be procured on securing newer services in the face of the termination.
Answer:
To be eligible for business deductions, your business must make a profit in any __________ years of a __________-year period.
b. 3,5
Explanation:
The IRS safe harbor rule states that a business must make a profit in 3 out of 5 consecutive years to be regarded as a business that is established for profit-making motive. This implies that if profits are not made in 3 of 5 consecutive years, IRS will not presume that the entity is established for profit, thereby affecting the entity's ability to claim business deductions.