Klint Microsystems,a Microprocessor Manufacturer,was Contracted by Zeitar Studios to Manufacture

question 51

Multiple Choice

Klint Microsystems,a microprocessor manufacturer,was contracted by Zeitar Studios to manufacture specially designed microchips to be used in an audio engineering process.Zeitar was to pay Klint $300,000 as per the contract.Klint decided to redesign its existing microchips and make them suitable for Zeitar.While the finished microchips were being shipped via a carrier,Klint was informed of Zeitar's insolvency.Klint cancelled the shipment before it was delivered.Klint then resold the chips to another studio where it had to settle for $150,000,as the chips were now suitable for specific audio engineering processes only.What remedy did Klint exercise when it stopped shipment to Zeitar?

• A)remedy to dispose of goods
• B)remedy to stop goods in transit
• C)remedy to obtain specific performance
• D)remedy to recover purchase rent

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Definitions:

Sales Commissions

Fees paid to sales representatives as a percentage of the sales they generate.

Traceable Fixed Advertising

Fixed advertising costs that can be directly linked to a specific product, segment, or area of the business.

Contribution Margin

The difference between sales revenue and variable costs of a product or service, used to cover fixed costs and generate profit.

Fixed Manufacturing Overhead

The set costs associated with operating a manufacturing facility that do not vary with the level of production, including salaries of managers and depreciation of equipment.