Question Completion:
a. List the 3 elements of an offer and describe each (in your own words).
b. Did Precious Jewelry make an offer when they placed the ad in the magazine? Did Sharon make an offer when she placed the order? Why or why not?
c. What will be the likely outcome if Sharon sues Precious Jewelry to force them to fill her order? Explain your answer.
Answer:
a. The three elements of a valid offer are Communication, Commitment, and Definite Terms. Communication of an offer should be between the offeror and the offeree and not with the general public. Commitment in an offer requires that the two parties are identified and are committed to the exchange of offer and acceptance. Definite terms means that the terms of the offer must be clear and well-understood by the involved parties.
b. Precious Jewelry did not make an offer when it placed the ad in the magazine. The ad was an invitation to offer. Sharon was the party that made the offer when she ordered for the jewelries. It was then left for Precious Jewelry to accept or reject the offer.
c. If Sharon sues Precious Jewelry to force them to fill her order, she does not have the locus standi because there is no basis for the existence of a contract between Sharon and Precious Jewelry since Sharon's offer was not accepted by Precious Jewelry and there was no consideration.
Explanation:
For a valid contract to exist between Sharon and Precious Jewelry, the five elements of a contract must be present. They include valid offer, acceptance, mutual consent (or assent), consideration, and legality (including capacity).
Answer:
Accumulated deprecation [End of 2021] = $4,200
Explanation:
Given:
Purchase cost on [1 sep 2019] = $18,500
Salvage value = $500
Number of year = 10 year
Find:
Accumulated deprecation [End of 2021]
Computation:
Amount of depreciation per year = [Purchase cost - Salvage value] / Number of year
Amount of depreciation per year = [18,500 - 500]10
Amount of depreciation per year = $1,800
Accumulated deprecation [End of 2021] = Depreciation in 2019 + Depreciation in 2020 + Depreciation in 2021
Accumulated deprecation [End of 2021] = [1,800(4/12)] + 1,800 + 1,800
Accumulated deprecation [End of 2021] = 600 + 1,800 + 1,800
Accumulated deprecation [End of 2021] = $4,200
Answer:
111
Explanation:
Exponential Smoothing forecast for 2018 = (Alpha*Actual demand in 2017) + ((1 - Alpha)*Forecast demand for 2017: Where Alpha = 0.1, Actual demand in 2017 = 120 and Forecast for 2017 = 110
Exponential Smoothing forecast for 2018 = (0.1 * 120) + ( (1 - 0.1) * 110)
Exponential Smoothing forecast for 2018 = (0.1 * 120) + (0.9 * 110)
Exponential Smoothing forecast for 2018 = 12 + 99
Exponential Smoothing forecast for 2018 = 111
Answer:
Contribution margin ratio= 38.13%
Explanation:
Giving the following information:
Noel & Vang Company sells only one product at a regular price of $9.00 per unit. Variable expenses are 55% of sales, and fixed expenses are $40,000. Management has decided to decrease the selling price to $8.00 in the hope of increasing its volume of sales.
Contribution margin ratio= [(price - variable cost)/price]
= [(8-4.95)/8] = 0.3813 = 38.13%
Quality management is the act of overseeing all activities and tasks that must be accomplished to maintain a desired level of excellence. This includes the determination of a quality policy, creating and implementing quality planning and assurance, and quality control and quality improvement.