Ron and Fidelity do not have a contract because the initial offer from Fidelity was terminated when Monica decided to stay. Hence, when Ron accepted, there was no standing offer for a contract.
No, Fidelity and Ron do not have a contract. The reason behind this is the concept of offer and acceptance in contract law. In this scenario, Fidelity Corporation’s offer was terminated when Monica decided to stay, making the earlier offer to Ron void since an employment position no longer existed.
When, Monica signed a new contract, Fidelity Corporation's offer to Ron was effectively withdrawn before Ron could accept it. Therefore, when Ron sent a formal letter of acceptance to Fidelity, there was no offer to accept, making the creation of a contract impossible.
The crux of the situation lies in the basic principles of contract formation, which dictate that a valid contract requires an offer, acceptance, and consideration. In this case, the essential element of offer was missing when Ron attempted to accept, thus, barring the formation of a valid contract.
#SPJ2
Which of the following terms refer to these advertisements?
A) pay-per-click ads
B) floating ads
C) interstitials
D) superstitials
E) banner ads
Answer:
The correct answer is letter "E": banner ads.
Explanation:
Banner ads are rectangular publications portrayed at the top, bottom, left or right side of a website to promote products or services on a website different from the one the goods are sold. Banner ads invite visitors to go into the advertiser's website to dive into its gamma of products offered.
The advertisements that appear above the organic search results are called pay-per-click ads. This is a form of online advertising where advertisers pay a fee for each click on their ad.
The advertisements that appear above the organic search results when you're searching for the details of a refrigerator are referred to as pay-per-click ads (option A). These are a type of online advertising where the advertiser pays a fee each time their ad is clicked by a user. The search engine makes use of this advertising model for its ads, which are strategically placed to attract potential buyers. Other options like floating ads, interstitials, superstitials, and banner ads are also types of online advertisements but they have different characteristics and are used in different contexts.
#SPJ12
(b) Determine the revenue that Aaron will recognize in 2017.
Answer:
Explanation:
Transaction price is the amount expected to be payed either as wages or revenue in respect of a service delivered.
Commission per policy = $100
Additional commission = $10
Estimated renewal years (based on experience) =4.5 years
Number of policies sold = 100
a)Transaction price
Commission = 100*100 =$10000
Commission on renewal = (100*4.5*10)= $4500
Total transaction price = 10000+4500 = $14500
Revenue for 2017.
In IAS 18 , revenue are recognized when earned.
Therefore the revenue recognized for the year 2017 will be the revenue earned and due to be received and not a future revenue.
The revenue recognized = 100*100 = $10,000
Suppose that there are two goods, X and Y, that are competing for dominance in a market with network externalities. Furthermore, suppose that the market has chosen good X even though it is inferior to good Y and that the net benefits of switching from X to Y are $20 while the costs of switching are $30. If the market stays with good X, then __________________ has occurred. If the costs of switching were to fall to $15 and the market still stays with good X then ___________________________.
A) No market failure; market failure has occurred.
B) Market failure; no market failure has occurred.
C) No market failure; there will still be no market failure.
D) Market failure; there will still be market failure.
Answer:
The correct answer is A)
Suppose that there are two goods, X and Y, that are competing for dominance in a market with network externalities. Furthermore, suppose that the market has chosen good X even though it is inferior to good Y and that the net benefits of switching from X to Y are $20 while the costs of switching are $30. If the market stays with good X, then No Market Failure has occurred. If the costs of switching were to fall to $15 and the market still stays with good X then Occurred
Explanation:
Market failure is the economic situation defined by an inefficient distribution of goods and services in the free market.
Reasons for market failure include: positive and negative externalities, environmental concerns, lack of public goods, under provision of merit goods, over provision of demerit goods, and abuse of monopoly power.
In the question above, we see that at first there is a substandard good but people stick to it because it cost much more to switch than to enjoy the utility derivable from the good. This is logical. So there the forces of the market (price, demand and supply) are functional by themselves.
On the other hand, the cost of switching falls below the value of the benefit derivable. Logically, because it is an inferior good, people ought to switch because there is a better alternative. However because the market stays same, it means that the forces have failed to adjust accordingly.
Cheers!
Last week, 1,550 hours were worked to make 1,000 Zippies, and $5,115 was spent for variable manufacturing overhead.
1. Hanson’s rate variance (VMRV) for variable manufacturing overhead for the week was:_______.
a. $465 unfavorable.
b. $400 favorable.
c. $335 unfavorable.
d. $300 favorable
2. Hanson’s efficiency variance (VMEV) for variable manufacturing overhead for the week was:______.
a. $435 unfavorable.
b. $435 favorable.
c. $150 unfavorable.
d. $150 favorable.
Answer:
Variable manufacturing overhead rate variance= $465 unfavorable
Variable overhead efficiency variance= $150 unfavorable
Explanation:
Giving the following information:
Standard:
1.5 standard hours per Zippy at $3.00 per direct labor hour
Actual:
1,550 hours to make
1,000 Zippies
$5,115 was spent
To calculate the variable overhead rate variance, we need to use the following formula:
Variable manufacturing overhead rate variance= (standard rate - actual rate)* actual quantity
Actual rate= 5,115/1,550= $3.3
Variable manufacturing overhead rate variance= (3 - 3.3)*1,550
Variable manufacturing overhead rate variance= $465 unfavorable
To calculate the variable overhead efficiency variance, we need to use the following formula:
Variable overhead efficiency variance= (Standard Quantity - Actual Quantity)*Standard rate
Variable overhead efficiency variance= (1.5*1,000 - 1,550)*3
Variable overhead efficiency variance= $150 unfavorable
March $29,000
April $19,000
May $25,000
June $24,000
The company expects 70% of its sales to be credit sales and 30% for cash. Credit sales are collected as follows: 25% in the month of sale, 67% in the month following the sale with the remainder being uncollectible and written off in the month following the sale. The budgeted accounts receivable balance on May 31 is:
a. $22,320.
b. $18,750.
c. $13,125.
d. $11,725.
Answer:
Option (c) is correct.
Explanation:
It is assumed that all the sales cash and credit up to the month of April will be adjusted before 31st may.
Any receivables remaining as on 31st May are related to the sales of May only.
May Sales = $25,000
Out of which Cash sales adjusted in the same month:
= 30% of May sales
= 30% × 25,000
=$7,500
Remaining credit sales:
= May sales - Cash sales
= $25,000 - $7,500
= $17,500
Out of which 25% i.e. $4,375 received in May only.
The budgeted accounts receivable balance on May 31 is:
= Remaining credit sales - Received 25% in May
= 17,500 - 4,375
= $13,125
b. Some hamburgers that are valued more highly by consumers than their opportunity cost of production are not being produced and sold
c. Some hamburgers produced incur opportunity costs of production that exceed their value or marginal benefit to consumers.
Which of the following must be true for a market to be able to achieve an efficient outcome?
a. The market price is determined solely by the forces of supply of and demand for a good.
b. Firms can freely enter or exit the market without any barriers.
c. Private property rights are well-defined and enforced.
Answer:
a. The opportunity cost of producing the last hamburger equals the marginal benefit of consumption.
2. a. The market price is determined solely by the forces of supply of and demand for a good.
Explanation:
1. Since all the hamburgers are sold at an equilibrium price of $5 and all the hamburgers are sold, that is clear reflection that the opportunity cost that is the benefit foregone in order to produce the last hamburger = the maximum price that the consumer can pay for buying the additional hamburger, that is marginal benefit.
In that case the producer shall always produce the additional hamburger.
Accordingly the outcome in market is economically efficient.
2. When the price is determined by the forces of supply and demand, that is at a point where the intersection of supply and demand forces takes place, it is the most efficient outcome, as at that price maximum consumers are ready to buy, and also maximum supplies are ready to be done, both are satisfied at their levels.