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Mila [183]
3 years ago
12

SmartTalk, Inc, makes and markets cell phones and related accessories. When problems develop with SmartTalk products or sales, t

he company may be liable in product liability for any of the following except:___________A) a manufacturing defectB) a design defect.C) an inadequate warning.D) an ineffective marketing plan.
Business
1 answer:
Iteru [2.4K]3 years ago
5 0

Answer:

D) an ineffective marketing plan.

Explanation:

Product liability is defined as the liability that manufacturer bears when he puts defective product in the hands of the consumer.

Manufacturers are liable for damages that occur from the use of their products. They are also responsible for providing adequate instructions on use of the product and warning of adverse effects a user can experience.

SmartTalk, Inc produces cell phones and related accessories. They have product liability when there is a manufacturing defect, design defect, and inadequate warning on use of the product.

However the company does not have product liability for ineffective marketing as this is related to how well the company sells the product and not if the product is defective.

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Finished units                                           73,600     96,200        118,800

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Direct materials($3)                              $220,800   $288,600  $356,400

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Total variable costs                              $1,324,800 $1,731,600 $2,138,400

Fixed cost

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Supervision[($2 * 1,299,600) / 12]        <u>$216,600 </u>    <u>$216,600 </u>    <u>$216,600</u>

Total fixed costs                                    <u>$866,400</u>   <u>$866,400</u>    <u>$866,400</u>

Total costs                                            $2,191,200 $2,598,000 $3,004,800

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