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Oxana [17]
1 year ago
10

Carpet Woes. Beau went shopping at ABC Carpet. He saw some carpet he liked but could not make up his mind. The manager at ABC Ca

rpet wrote down the proposed purchase price for him along with a statement that the price would be good for three months. Two months later Beau went back to ABC Carpet to purchase the carpet. Unfortunately, the price had gone up. Beau showed the manager his writing and guaranteed price, but the manager said that the offer was no longer good. Although he had to pay more than the ABC manager had initially promised, Beau proceeded to purchase his carpet from ABC Carpet, and he also contracted with ABC to do the installation. Unfortunately, Beau almost immediately started to have problems with the carpet. Beau told the sales manager of ABC Carpet that he was planning on bringing suit for breach of warranty. The sales manager, however, told him that the breach of warranty provisions only applied to sales of goods and that the carpet purchase was for installation, a service. Which of the following is true regarding the enforceability of the offer made by the manager at ABC Carpet?
a. Common law will be applied, not the UCC, because the contract was mixed.
b. The UCC will be applied, not common law because the contract was mixed.
c. The court will apply the predominant-purpose test to determine whether the predominant purpose of the contract was the sale of goods in which case the UCC would apply.
d. The court will apply the service-warranty test to determine whether the predominant purpose of the contract was the provision of a service in which case the UCC would apply.
Business
1 answer:
ella [17]1 year ago
4 0

Answer: The court will apply the predominant-purpose test to determine whether the predominant purpose of the contract was the sale of goods in which case the UCC would apply.

Explanation:

Based on the information given in the question, we should note that the court will apply the predominant-purpose test to determine whether the predominant purpose of the contract was the sale of goods in which case the UCC would apply.

We should note that under a predominant purpose test, it will apply when the transaction involved is Mena for goods sales and not for the service sales.

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Katherine is selecting colors for the background and the text on her web page. What aspect of color theory should she pay attent
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Giant Company has three products, A, B, and C. The following information is available:
myrzilka [38]

Answer:

$24,000

Explanation:

                             Product A      Product B     Product C

sales                        70,000            97000

Variable  cost           37000            51000

Contribution margin 33000            46000

Avoidable cost          10,000           20000

Unavoidable cost       7000             12000         9400

Operating income      16000            14000

Total operating income if product C is dropped is (16000+14000 +3400-9400)

=$24000

Please note that Giant company with still incur the unavoidable cost even if the product is dropped. This is assumed to be a portion of the fixed overhead expenses allocated to the product in the course of normal operation.However , the loss made of 3400 will be avoided as well

7 0
2 years ago
Smithson Company uses a job-order costing system and has two manufacturing departments— Molding and Fabrication. The company pro
vazorg [7]

Answer:

Instructions are below.

Explanation:

1)

<u>a) First, we need to calculate the total estimated overhead:</u>

Total overhead= 1,100,000 + (5*50,000)= 1,350,000

<u>Now, we can determine the overhead rate:</u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 1,350,000/50,000

Predetermined manufacturing overhead rate= $27 per machine hour

<u>b) </u>

Job D-75:

Total cost= direct material + direct labor + allocated overhead

Total cost= 700,000 + 360,000 + 27*20,000

Total cost= $1,600,000

Job C-200:

Total cost= 550,000 + 400,000 + 27*30,000

Total cost= $1,760,000

c) Selling price= 150% of manufacturing costs

Job D-75= 1,600,000*1.5= $2,400,000

Job C-200= 1,760,000*1.5= $2,640,000

d) COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

COGS=  0 + (1,600,000 + 1,760,000) - 0

COGS= $3,360,000

<u>2) </u>

<u>a) </u>

Molding= (800,000/20,000) + 5= $45 per machine hour

Assembly= (300,000/30,000) + 5= $15 per machine hour

<u>b) </u>

Job D-75:

Total cost= 700,000 + 360,000 + 45*20,000

Total cost= $$1,960,000

Job C-200:

Total cost= 550,000 + 400,000 + 15*30,000

Total cost= $1,400,000

<u>c) </u>

Job D-75= 1,960,000*1.5= $2,940,000

Job C-200= 1,400,000*1.5= $2,100,000

<u>d)</u> COGS= 0 + (1,960,000 + 1,400,000) + 0

COGS= $3,360,000

4 0
2 years ago
Suppose that in September 2018 a company takes a long position in a contract on May 2019 crude oil futures. It closes out its po
DochEvi [55]

Answer:

The company total profit is $2,200

The realization of the $2,200 total profit will be on the day-to-day basis with the time frame as followed:

- $800 will be realized in the 2018 ( from September to end of the year);

- $1,400 will be realized in 2019 ( from the begining of 2019 to the time the position is closed.

(a) A Hedger will be taxed on his/her $2,200 profit on the year of 2019;

(b) A Speculator will be taxed on his/her $2,200 profit right it is realized. In other words, $800 of profit will be taxed in 2018 and 1,400 of profit will be taxed in 2019.

Explanation:

- The total profit is calculated as: ($50.50-$48.30) x 1,000 = $2,200;

- The profit realized in 2018 is calculated as ( $49.10-$48.30) x 1,000 =$800;  

- The profit realized in 2019 is calculated as ( $50.50-$49.10) x 1,000 =$1,400.

8 0
2 years ago
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