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Oksanka [162]
2 years ago
6

Tommy McCartney is a sixteen-year-old high school student. He has worked forty hours per week at the local convenience store ove

r the last year, and has diligently saved $6,000 for the purchase of his first car. While visiting a local car dealership, Tommy finds the “car of his dreams,” a used yellow Camaro. Tommy walks into the dealership, announces to the dealership owner that he is “ready to buy,” negotiates $6,000 as the purchase price, and leaves the dealership a proud car owner. Over the course of the next six months, Tommy drives the Camaro eight thousand miles, wears the tires thin, dents the left front fender, and regrets his purchase. He realizes that in two short years college will beckon, and he knows that his parents cannot afford to pay for his higher education. In short, he wants his money back. On a Saturday morning, Tommy returns to the car dealership, walks into the sales office, and hands the keys to the seller, asking for the return of his $6,000. The dealer chuckles, and then his look turns stern, saying “Son, I don’t owe you anything. You’ve just learned a lesson in the ‘School of Hard Knocks.’ The car is still yours, and the money is still mine!” Who will prevail? Is it legal and/or ethical to allow Tommy to escape his contractual obligations?
Business
1 answer:
Aleks [24]2 years ago
5 0

Explanation:

First of all, the dealer should not have sold the car to the sixteen year old boy without the presence of his parents or any guardian. It is illegal to have a contract with a child who is not legally allowed to drive the car before the age of eighteen.

Now secondly if the dealer has somehow sold the car to the boy, the boy cannot come back after few months and ask for returning his money because he purchased the car, the condition of the condition of the car got worse during the whole time when car was with him, and also there is no legal clause in the agreement which allows him to demand his money back after using the car for this long time. So demanding his money back from the dealer is totally unethical as well as illegal. The dealer is true that the car is still the property of the boy and the money is still the dealer's money.

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Your Insurance company bills you $687.89 every 6 months for your premium payments. You decide to pay per month.
eimsori [14]

Answer:

$114.65

Explanation:

If you divide $687.89 by 6 months you'll get $114.64833333333333333 but if you simply you'll get 114.65 and you'll only pay $0.11 over.

3 0
2 years ago
Bartran Company assembles ink cartridges. Each finished cartridge has three child items: a plastic case, a label and several oun
Anvisha [2.4K]

Answer:

7 days

Explanation:

Although the lead time for assembling a finished cartridge is only 2 days, the assembly process cannot begin until all child items are available. Thus, the time that would take Bartran to create at least one finished ink cartridge if it started with nothing in stock is the highest lead time of all child items added to the lead time of assembly.

Labels have the highest lead time of 5 days, therefore the total time taken is:

5 +2 = 7 days

7 0
2 years ago
Karen and mike currently insure their cars with separate companies, paying $700 and $900 a year. if they insured both cars with
Murljashka [212]
<span>Answer: Now total premium is (700+900) = 1600 so saving will be $ 160 . Future value of the savings over 10 years based on annual interest</span>
5 0
2 years ago
During April, the Meade Enterprises had the following operating results: Sales revenue $ 1,660,000 Gross margin $ 680,000 Ending
QveST [7]

Answer:

cost of good manufacture = $947000

Explanation:

given data

Sales revenue = $1,660,000

Gross margin = $680,000

Ending work-in-process inventory = $58,000

Beginning work-in-process inventory = $96,000

Ending finished goods inventory = $108,000

Beginning finished goods inventory = $141,000

Marketing costs = $266,000

Administrative costs = $166,000

solution

cost of goods manufactured for we first we get

cost of good sold = sale revenue  -  gross margin  ............1

cost of good sold = $1,660,000 - $680,000  

cost of good sold = $980000

and

now we get cost of good manufacture that is

cost of good manufacture = cost of good sold + Ending finished goods inventory  - Beginning finished goods inventory ............2

cost of good manufacture = $980000 + $108,000 - $141,000  

cost of good manufacture = $947000

6 0
2 years ago
Absorption and Variable Costing Comparisons: Production Equals Sales Assume that Smuckers manufactures and sells 30,000 cases of
pantera1 [17]

Answer:

a:<u>Total Variable Costs        $26 </u>    

a:<u>Total Manufacturing Costs = $ 30</u>  

b:<u>Net Income </u><u><em>Variable Costing</em></u><u>  $100,000</u>  

b: <u>Net Income  </u><u><em>Absorption Costing</em></u><u>  $ 100,000</u>

Explanation:

Smuckers Manufacturers

<u>Costs per case under  Variable Costing</u>

Direct materials per case 16

Direct labor per case 7

Variable manufacturing overhead per case 3

<u>Total Variable Costs        $26 </u>        

<u>Costs per case under  Absorption Costing</u>

Direct materials (30,000*16)              480,000

Direct labor (30,000*7)                    210,000

Variable manufacturing overhead  (30,000*3)   90,000

Total Variable Costs                                                       780,000

Total fixed manufacturing overhead                           $120,000

Total Manufacturing Costs                                         $ 900,000

<u>Total Manufacturing Costs per Case= $ 900,000/ 30,000= $ 30</u>

The difference between the variable and absorption costing is that the product costs include variable and fixed costs in absorption costing. But in variable costing the product costs include only variable costs.

<u><em> SMUCKERS </em></u>

<u><em>Variable Costing Income Statement </em></u>

<u><em>For the Third Quarter of 2017 </em></u>

<u><em></em></u>

Sales (30,000*34)                                                       1020,000  

Direct materials (30,000*16)              480,000

Direct labor (30,000*7)                    210,000

Variable manufacturing overhead  (30,000*3)   90,000

Total Variable Costs                                                       780,000

Contribution Margin                                                        240,000

Fixed Expenses                                                               140,000

Total fixed manufacturing overhead      $120,000

Fixed selling and administrative 20,000

<u>Net Income                                                                   100,000</u>

In this case the net income under both variable and absorption costing does not change because the units produced are units sold. No cost is charged to ending inventory under absorption costing.

<u><em>SMUCKERS </em></u>

<u><em>Absorption Costing Income Statement </em></u>

<u><em>For the Third Quarter of 2017 </em></u>

Sales (30,000*34)                                                       1020,000  

Direct materials (30,000*16)              480,000

Direct labor (30,000*7)                    210,000

Variable manufacturing overhead  (30,000*3)   90,000

Total fixed manufacturing overhead      $120,000

Total Manufacturing Costs                                              900,000

Gross Profit                                                                   120,000

Fixed Expenses                                                               20,000

Fixed selling and administrative 20,000

<u>Net Income                                                                   100,000</u>

3 0
2 years ago
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