Equipment Manufacturing Company tells First Choice Supplies, Inc, that it needs an adhesive to do a particular job. First Choice provides a certain brand. When it does not perform to Equipment Manufacturing's speci¬fications, Equipment Manufacturing sues First Choice, which claims, "We didn't expressly promise anything.". What should Equipment Manufacturing argue?
The buyer should argue that the seller breached an implied warranty of fitness for a particular pur¬pose. An im¬plied warranty of fit¬ness for a particu¬lar purpose arises when a seller knows a particu¬lar purpose for which a buyer will use goods and that the buyer is re¬lying on the seller's skill and judgment to select suitable goods. When the buyer in this problem told the seller that the product was needed to do a particular task, the seller became aware of the buyer's purpose for the goods and knew that the buyer was relying on the seller's skill to choose and sell a product that would meet that specification. The seller did not make an express warranty, under these facts, but there did arise an implied war¬ranty of fitness for a particular purpose.
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Supler Corporation produces a part used in the manufacture of one of its products. The unit product cost is $18, computed as follows: Direct materials$8 Direct labor 4 Variable manufacturing overhead 1 Fixed manufacturing overhead 5 Unit product cost$ 18 An outside supplier has offered to provide the annual requirement of 4,000 of the parts for only $14 each. The company estimates that 60% of the fixed manufacturing overhead cost above could be eliminated if the parts are purchased from the outside supplier. Assume that direct labor is an avoidable cost in this decision. Based on these data, the financial advantage (disadvantage) of purchasing the parts from the outside supplier would be:
A. ($4) per unit on average B. $2 per unit on average C. ($1) per unit on average D. $1 per unit on average
Due to their brevity, text messages will probably ______.
A. become a standard practice in business communication B. develop norms where text jargon is appropriate in business settings C. increase the workload of electronically savvy workers D. not replace e-mail as the primary means of communications in business settings
For years one through five, a proposed expenditure of $500,000 for a fixed asset with a 5-year life has expected net income of $40,000, $35,000, $25,000, $25,000, and $25,000, respectively, and net cash flows of $90,000, $85,000, $75,000, $75,000, and $75,000, respectively. The cash payback period is 5 years
Indicate whether the statement is true or false
What does the concept of SARFIT – Structural Adjustment to Regain Fit – mean?
a. All organizations would need to undergo structural adjustment to ensure they never rely on old and outdate contingencies for too long b. All organizations would sometimes slip out of alignment with the contingencies they must deal with and so must undergo structural change c. All organizations should ensure they restructure themselves every so often, irrespective of what the contingencies they deal with are doing d. None of the above