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DiKsa [7]
3 years ago
10

Beginners Run Ski Shop sells a pair of skis to Crystal. When Crystal first uses the skis, theysnap in two. The cause is somethin

g that Beginners Run did not know about and could not have discovered. Beginners Run breacheda. the merchant’s implied duty of inspection.b. the implied warranty of merchantability.c. no duty or warranty because Beginners Run knew nothing about the defect that madethe goods unsafe.d. no duty or warranty because consumers should reasonably expect to occasionally find a product that does not work as warranted.
Business
1 answer:
enyata [817]3 years ago
3 0

Answer:

b. the implied warranty of merchantability

Explanation:

Implied warranty of merchantability refers to an implied assurance, in every sales transaction that the seller's goods are safe and fit for intended purpose of usage.

It represents an unspoken guarantee on the part of the seller that his goods conform to the acceptable standards and properly packaged and labeled and abide by the promises conveyed on their label.

The motive behind such a warranty being, the seller must properly inspect and test the quality of his goods before releasing them or making them available for sale in the market.

In the given case, the seller sold skis to the customer which cracked into two upon usage. The seller isn't aware of the cause of the consequence. Thus, the seller breached the principle of implied warranty of merchantabilty as per which, it should've first checked and inspected the skis before making them available for sale.

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5 0
3 years ago
In a newsvendor model where the demand has normal distribution, if Co &lt; Cu, i.e., the overage cost is lower than the underage
mars1129 [50]

Answer:

maximum

Explanation:

The newsvendor model may be defined as the mathematical model which is characterize by the fixed prices as well as the uncertain demand for the perishable products. This model is mainly used to determine the optimal inventory level.

According to the newsvendor model, there is only one opportunity to order. The cost of buying large quantities of the products may result in disposing them or selling the products at a lower price.

The optimal ordering quantity is maximum when the underage cost is higher than the overage cost.

8 0
2 years ago
In the past year, TVG had revenues of $2.95 million, cost of goods sold of $2.45 million, and depreciation expense of $178,000.
Firdavs [7]

Answer:

3.5

Explanation:

Computation for the firm’s times interest earned ratio

Revenues$ 2.95 million

Cost of goods sold$ 2.45 million

Depreciation expense$ 178,000.00

Book values of Debt outstanding$ 1.15 million

Interest rate8.00

First step is to calculate for the EBIT

Using this formula

EBIT= Revenues -(Cost of goods sold +Depreciation expense$ 178,000.00)

EBIT=$2,950,000-($2,450,000+$178,000)

EBIT=$2,950,000- $2,628,000

EBIT=$322,000

Second step is to find the Interest

Using this formula

Interest =Debt outstanding with book value ×Interest rate

Let plug in the formula

Interest =$1,150,000×8%

Interest =$92,000

Now let find the firm’s times interest earned ratio

Using this formula

Firm’s times interest earned ratio=EBIT/INTEREST

Where,

EBIT=$322,000

INTEREST=$92,000

Let plug in the formula

Firm’s times interest earned ratio=$322,000/$92,000

Firm’s times interest earned ratio =3.5

Therefore the firm’s times interest earned ratio will be 3.5

7 0
3 years ago
If Division Inc. expects to sell 200,000 units in the current year, desires ending inventory of 24,000 units, and has 22,000 uni
Lyrx [107]

Answer:

a) True

Explanation:

Sales = Opening + Production - Closing

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Production = 202,000 Units

Hence, the answer is a. True

4 0
2 years ago
Which of the following statements regarding GDP is correct?
nirvana33 [79]

Answer:

Correct option is (a)

Explanation:

GDP or Gross domestic product includes monetary value of all goods and services produced within a country. It includes all private and public investments and exports less taxes and imports.

Option b, c and d are incorrect as GDP accounts for only domestic production and not foreign activities. Details about how income is distributed is not given by GDP. GDP provides details about economic condition of the nation. GDP does not indicate wholesome well being of the nation like human development, infant mortality and standard of living.

GDP accounts for factory production but does not account for any production carried out at the cost of environmental degradation.

3 0
2 years ago
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