Elkhart, a Division of Indiana Enterprises, Currently Makes 100,000 Units

question 15

Multiple Choice

Elkhart, a division of Indiana Enterprises, currently makes 100,000 units of a product that has created a number of manufacturing problems. Elkhart's costs follow.

If Elkhart were to discontinue production, fixed manufacturing costs would be reduced by 70%. The relevant cost of deciding whether the division should purchase the product from an outside supplier is:

• A) $540,000.
• B) $594,000.
• C) $666,000.
• D) $720,000.
• E) $726,000.

Distinguish between oral and written contracts and understand their enforceability.

Explain the significance of the Uniform Commercial Code (UCC) in relation to contract requirements.

Identify and explain exceptions to the statute of frauds.

Understand the main-purpose rule and its application to promises to pay another's debt.

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Definitions:

Ballast Water

Water carried in ships' ballast tanks to improve stability and balance, which, when discharged, can introduce invasive aquatic species to new environments.

Autonomy

The degree to which a job provides the employee with the freedom, independence, and discretion to schedule their work and determine how it is done.

Responsibility

The state or fact of having a duty to deal with something or of having control over someone.

Control

The power to influence or direct people's behavior or the course of events.