Martha contacts a bakery to get a cake for her son's birthday party. She tells the baker that she will pay him $150 for the cake if he delivers the cake on Friday evening
If the baker does not deliver the cake on Friday evening, which of the following will hold true?
A) Martha can sue the baker to recover $150 in damages.
B) Martha can sue the baker but cannot recover damages.
C) The baker has to give $150 plus cost of the replacement cake to Martha as he entered into a verbal contract with her.
D) Martha cannot sue the baker.
D
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Jaakola Corporation makes a product with the following costs: Per UnitPer YearDirect materials$17.00 Direct labor$22.00 Variable manufacturing overhead$4.00 Fixed manufacturing overhead $504,000 Variable selling and administrative expenses$4.90 Fixed selling and administrative expenses $319,200 ?The company uses the absorption costing approach to cost-plus pricing described in the text. The pricing calculations are based on budgeted production and sales of 28,000 units per year. The company has invested $360,000 in this product and expects a return on investment of 15%. The markup on absorption cost would be closest to:
A. 27.1% B. 15.0% C. 84.3% D. 29.9%
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