Nell Exceeds Her Authority When Making a Contract for Denver

question 56

True/False

Nell exceeds her authority when making a contract for Denver. If he ratifies the contract, both Nell and Denver are in the same position as the one they would have been in had Denver actually authorized the act originally except that Nell is not entitled to compensation.

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Definitions:

Total Cost

Represents the complete amount of expenses incurred by a business in producing goods or services.

Contribution Margin Per Unit

The selling price of a product minus its variable costs, representing the amount each unit contributes to covering fixed costs and generating profit.

Sales Revenue Per Unit

The amount of money generated from selling one unit of a product, before any expenses are subtracted.

Variable Cost Per Unit

The cost associated with producing one additional unit of a product, which varies with the level of production.