Pantia Agreed to Write Software Codes for "A Reasonable Price

question 12

Essay

Pantia agreed to write software codes for "a reasonable price" for a video game being produced by Mindbinder,Inc.When Pantia submitted a bill for $5,000,Mindbinder believed that a reasonable amount for the work was $3,000 and sent Pantia a check for that amount with a notation on the check,"Payment in full." Discuss the case.

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Definitions:

Gross Profit

The difference between revenue from sales and the cost of goods sold, before accounting for selling, general, and administrative expenses.

Cost of Goods Sold

The specific costs related to the production of goods that a company markets.

Net Realizable Value

An estimated selling price in the ordinary course of business minus reasonably predictable costs of completion, disposal, and transportation.

Selling Price

The amount of money charged for a product or service, which may include a markup for profit over the cost of production.