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Dvinal [7]
3 years ago
9

Holly comes into Matthew's bicycle shop to learn about the Easy Ride bicycle she saw in his newspaper ad. Matthew shows her the

floor sample of the bicycle and says that it is designed to shift and brake more easily than her current model does. She decides to purchase one. Matthew gets a box from the back of the shop and sells it to her, stating that it contains the bicycle Holly wants. Based on his statements, which of the following is not an express warranty created by Matthew:
a. that the bike conforms to the floor sample he showed to Holly.
b. that the bike conforms to the highest industry safety standards.
c. that the bike conforms to his description of the Easy Ride.
d. that the bike conforms to his promise about the bicycle's shifting and braking ability.
Business
1 answer:
andreev551 [17]3 years ago
8 0

Answer: b. that the bike conforms to the highest industry safety standards.

Explanation:

An express warranty simply refers to the agreement by a seller of a particular product to provide a replacement or repair for a product when it's faulty within a certain period of time.

Based on his statements in the question, the option that is not an express warranty created by Matthew is that the bike conforms to the highest industry safety standards.

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Normal = $53.675

Explanation:

As for the provided information:

We have,

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2. Calculating per product cost

Particulars              Deluxe                 Normal

Setup Cost

In 3:2 ratio            $1,230,000              $820,000

Machining Cost

In 1:3 ratio             $12,000,000          $36,000,000

Engineering cost

In 1:2 ratio            $3,000,000               $6,000,000

Packing Cost

In 1:4 Ratio             $30,000                  $120,000

Therefore total cost for each printer

                              $16,260,000           $42,940,000

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<u>Cost per unit               $162.60             $53.675</u>

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