If Any Contract Was Created by the Mere Operation of Law

question 41

Multiple Choice

If any contract was created by the mere operation of law without a formal agreement between the parties, it becomes:

• A) a unilateral contract
• B) a commercial contract
• C) a quasi contract
• D) none of the above

Comprehend the role of contribution margin ratio and contribution margin per unit in determining net operating income and break-even points.

Analyze the effects of changes in fixed and variable expenses on break-even points and overall financial performance.

Interpret the relationship between sales volume, contribution margin, and net operating income.

Grasp the concept of operating leverage and its impact on net operating income under varying sales conditions.

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Definitions:

Calendar Year

The 12-month period a business chooses for its accounting year. Alternatively known as fiscal year and natural business year.

State Unemployment Tax Rate

The rate at which employers are taxed by their state government to fund unemployment insurance benefits for laid-off workers.

Federal Unemployment Tax Rate

The percentage rate at which employers are taxed by the federal government to fund the unemployment benefits pool.

FICA Tax Rates

The percentage rates set by law that determine the amount of Social Security and Medicare taxes that must be withheld from employees' paychecks and matched by employers.