Reference: 07-11
the International Company Makes and Sells Only One

question 79

Multiple Choice

Reference: 07-11
The International Company makes and sells only one product, Product SW. The company is in the process of preparing its Selling and Administrative Expense Budget for the last half of the year. The following budget data
are available: $$\begin{array} { | l | l | l | } \hline & \begin{array} { l } \text { Variable Cost Per } \\\text { Unit Sold }\end{array} & \text { Monthly Fixed Cost } \\\hline \text { Sales commissions } & \$ 0.70 & \\\hline \text { Shipping } & \$ 1.10 & \\\hline \text { Advertising } & \$ 0.20 & \$ 14,000 \\\hline \text { Executive salaries } & - & \$ 34,000 \\\hline \text { Depreciation on office equipment } & - & \$ 11,000 \\\hline \text { Other } & \$ 0.25 & \$ 19,000 \\\hline\end{array}$$ All expenses other than depreciation are paid in cash in the month they are incurred.
-If the budgeted cash disbursements for selling and administrative expenses for November total $123,250, then how many units of Product SW does the company plan to sell in November (rounded to the nearest whole unit) :

• A)22,952.
• B)25,000.
• C)33,444.
• D)20,111.

Identify circumstances under which a contract can be deemed void or unenforceable.

Understand the legal capacity required to enter into contracts and the exceptions based on age, mental condition, and status.

Explore the consequences of contracting under illegal terms or with parties lacking legal capacity.

Discuss the impact of legislation, charters, and human rights law on the capacity to contract.

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Definitions:

Innovative Solutions

Novel and creative answers to problems or challenges that improve processes, methodologies, or technologies.

Improved Quality

Improved quality involves enhancements in the standard or grade of products or services to meet or exceed customer expectations.

Entrepreneur

An individual who starts, operates, and assumes the risk of a business venture, aiming to transform innovations into economic goods.

Necessary Risks

Risks that are considered essential to take in pursuit of achieving objectives, innovation, or staying competitive in business.