Metalcrafters made a contract to design a new earth-moving vehicle for Lamar Highway Construction Co. Metalcrafters was depending on the genius of Samet, the head of its research department, to design a new product. Shortly after the contract was made between Metalcrafters and Lamar, Samet was killed in an automobile accident. Metalcrafters was not able to design the product without Samet. Lamar sued Metalcrafters for damages for breach of the contract. Metalcrafters claimed that the contract was discharged by Samet’s death. Is it correct?

Answers

Answer 1
Answer:

Answer:

Yes

Explanation:

Metalcrafters is right by claiming that the contract was discharged. The text makes a list of the impossibilities that allow for a contract to be discharged. “That the occurrence made performance impossible. The doctrine of impossibility relieves nonperformance only in extreme circumstances” (Twomey & Jennings). Samet’s death in the automobile accident qualifies Metalcrafters for the doctrine of impossibility. He was the only one capable of making the product and died unexpectedly.

Answer 2
Answer:

Final answer:

The death of a party does not usually discharge a contract, unless it is a 'personal service contract' that relies heavily on the unique skills of that individual. In this case, Metalcrafters may claim the contract was dependent on Samet's unique skills, thereby making it impossible to fulfill the contract upon his demise. However, the specific determination would rely on the contractual terms and its interpretive application in law.

Explanation:

The subject matter of this question is related to contract law, specifically the aspect of 'impossibility of performance' as a potential defense for breach of contract. In the circumstance described, Metalcrafters had a contract with Lamar to design a new product, which was then considered impossible due to the unfortunate death of Samet, a pivotal individual to this task.

Under normal circumstances, death does not discharge a contract. If a party promises to perform a task that can be performed by others, the contract generally remains in effect even if that party becomes unable to perform. However, where the contract is considered a 'personal service contract'—one that relies on the unique abilities or skills of a particular individual—performance of the contract may be impossible if that individual dies.

Whether Metalcrafters could argue that this was a personal service contract may depend on the specific terms of the contract and how much it relied on Samet's unique skills. This is a complex area of contract law and could depend on further aspects that aren't covered in the question. In other words, it's not exactly a straightforward 'yes' or 'no' matter.

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Buffy is engaging product users to create an exhaustive list of things that bother them when they use the product and how often those situations arise, then asking the consumers to rate the list in order of importance and asking which brands are associated with the items on the list. She is using an approach called _____________________________

Answers

Answer: Problem detection

Explanation: Problem detection is used in R&D, it is a techniques that asks consumers who are familiar with the product or service to ponder upon an exhaustive list of things that bothers them while using the product.

This is done to find the ideas to make creative strategies and improvements in product/service.

Problem Detection approach identifies and prioritizes the most pressing consumer concerns so that the brand they are associated with can address unmet needs that exist in the marketplace.

g Twins Jane and Hal each inherited $150,000 exactly ten years ago. Jane invested the entire amount in a brokerage account to fund her retirement. Her account has been earning 8% per year since she invested it, and she expects it to earn 5% per year for the next 20 years. Hal spent all of his inheritance and has not saved anything for retirement. Assume there are no taxes. a. How much is Jane expected to have in her account at retirement (20 years from now)? b. Due to sibling rivalry, Hal wants to have at least $100,000 more saved at retirement (20 years from now) than Jane is expected to have at that time. He plans to make an equal deposit each year in an account earning the same annual interest rate as Jane’s, i.e., 5%, with the first deposit occurring one year from today and the last occurring 20 years from today. How much must Hal deposit each year in order to achieve his goal?

Answers

Answer:

a) Jane currently has $150,000 x (1 + 8%)¹⁰ = $323,838.75 in her account

in 20 years, she will have $323,838.75 x (1 + 5%)²⁰ = $859,240.61

b) we can use the future value of an annuity formula to calculate Hal's annual contribution.

future value = annual contribution x annuity factor

annual contribution = future value / annuity factor

  • future value = $959,240.61
  • FV annuity factor, 5%, 20 periods = 33.066

annual contribution = $959,240.61 / 33.066 = $29,009.88

Rusties Company recently implemented an activity-based costing system. At the beginning of the year, management made the following estimates of cost and activity in the company’s five activity cost pools: Activity Cost Pool Activity Measure Expected Overhead Cost Expected Activity
Labor-related Direct labor-hours $16,380 1,260 DLHs
Purchase orders Number of orders $1,920 640 orders
Product testing Number of tests $4,275 285 tests
Template etching Number of templates $805 35 templates
General factory Machine-hours $42,600 7,100 MHs

Required:
Compute the activity rate for each of the activity cost pools.

Answers

Answer:

a.  Labor Cost Rate=   13 $ per DLH

b.  Purchase orders Rate= $ 3 per order

c. Product testing Rate =   $ 15 per test

d. Template etching Rate = $ 23 per template

e. General factory Rate=   $ 6 per MHs

Explanation:

Data

Activity            Activity                Expected Overhead       Expected

Cost Pool      Measure                  Cost                              Activity

Labor-related Direct labor-hours $16,380                 1,260 DLHs

Purchase orders Number of orders $1,920                 640 orders

Product testing Number of tests    $4,275                285 tests

Template etching Number of templates $805          35 templates

General factory Machine-hours          $42,600            7,100 MHs

The activity rate can be obtained by dividing the  total cost of each activity with the total cost of the driver allocated to it.

Calculations

Activity Rate = Expected Overhead Cost/ Expected Activity

a.  Labor Cost Rate=   $16,380   /  1,260 DLHs=  13 $ per DLH

b.  Purchase orders Rate=  $1,920/  640 orders= $ 3 per order

c. Product testing Rate =  $4,275 /285 tests= $ 15 per test

d. Template etching Rate = $805 /35 templates= $ 23 per template

e. General factory Rate=  $42,600/ 7,100 MHs= $ 6 per MHs

A company began its fiscal year with inventory of $186,000. Purchases and cost of goods sold for the year were $945,000 and $982,000, respectively. What was the amount of ending inventory?

Answers

Answer:

$149,000

Explanation:

Data provided as per the question below

Cost of goods sold = $982,000

Inventory = $186,000

Purchase = $945,000

The computation of amount of ending inventory is shown below:-

Cost of goods sold = Inventory + Purchase - Ending inventory

= $982,000 = $186,000 + $945,000 - Ending inventory

= $982,000 = $1,131,000 - Ending inventory

= $149,000

On October 1, a client pays a company the full $12,000 balance of a year-long contract. Using the accrual method, what's the unearned revenue as of December 31

Answers

Using the accrual method, the unearned revenue as of December 31 is $12,000.

What is Unearned revenue?

Unearned revenue can be defined as the amount a company received from their client for the service they are yet to rendered.

Since the company has received full balance for the services not yet provided. The unearned revenue as of December 31 will be $12,000 .

Reason been that the amount that the client paid the company is for a year-long contract, hence the $12,000 represent a prepayment amount for the service the company is yet to rendered to their client

Inconclusion using the accrual method, the unearned revenue as of December 31 is $12,000.

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The $12,000 payment is for a one-year contract, however, we will only record revenue from October 1 up to December 31 which are the months that already lapsed. The remaining nine months are still considered unearned revenue. Thus, the remaining unearned revenue is $9,000.

Unearned revenue is the amount received from a client for a service that has yet to be rendered. Since the company has received the full balance over the services not yet provided. As of December 31, the unearned revenue will be $12,000.

Because the client paid the company for a year-long contract, the $12,000 represents a prepayment for the service the company has yet to render to their client. Using the accrual method, the revenue that is not earned as of December 31 is $9000.

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Maize Company incurs a cost of $35 per unit, of which $20 is variable, to make a product that normally sells for $58. A foreign wholesaler offers to buy 5,400 units at $30 each. Maize will incur additional costs of $3 per unit to imprint a logo and to pay for shipping. Compute the increase or decrease in net income Maize will realize by accepting the special order, assuming Maize has sufficient excess operating capacity.

Answers

Answer:

$37,800.00

Explanation:

Maize Company cost structure is such that $20 out of the $35 is a variable cost and the balance of $15 is a fixed cost.

So the fixed cost will always be incurred whether or the special order is accepted.

So he relevant cost of accept the special order from the foreign wholesaler

is the relevant variable cost which is the variable cost of production and the additional print logo cost

Also remember that whether or not the order is accepted the fixed cost will still be incurred and besides Maize still has excess capacity

A relevant variable cost is the future cash cost that would be incurred as a result of producing and selling a unit of the product.

Relevant cost =  $20 + $3

                   = $23

The increase in net income = (selling price - relevant cost)× unit sold

=( $30 - $23 ) × 5,400

$37,800.00