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FACT Pattern 10-1 Lulene Makes the Best Lemon Meringue Pies in Mississippi.So Ellen,who

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FACT Pattern 10-1
Lulene makes the best lemon meringue pies in Mississippi.So Ellen,who owns Ellen's Old Fashion Cafe,contracts with Lulene to buy 50 pies per week at the price of $5.00 per pie.
Although Lulene took a class in business law,she forgot to get her agreement with Ellen in writing.Lulene and Ellen agreed during a chat.Lulene said: "I will supply you with lemon meringue pies for however long you want them at $5.00 per pie." Ellen said: "That's great,I'll take them." Both women were pleased.
Soon Lulene had a problem.Between a hurricane in Florida and brush fires in California,the price of lemons increased by 200%.Now,instead of the $5.00 per pie price she intended to charge Ellen,she feels she must charge $7.00 per pie to make a little profit.
Lulene calls Ellen with the bad news and Ellen has a fit.She tells Lulene that's too bad,but the deal is off.Lulene says,"That's what you think!" and goes to see Amanda,her attorney.
-Refer to Fact Pattern 10-1.Suppose the Mississippi legislature passes a law,one day after Lulene and Ellen make their contract,that the sale of lemon pies is prohibited in the state because lemons have been
Found to cause cancer.This statute makes the contract:

Definitions:

Cost of Selling Goods

The total expense directly incurred from the production or purchase of items sold by a business.

Cost of Goods Sold

An expense recorded on the income statement that reflects the total cost of producing or purchasing the goods that a company has sold during a specific period.

Cost of Goods Sold

Represents the total cost of all goods that were sold over a specific period, including the costs associated with production or purchase.

Gross Profit

The difference between revenue and the cost of goods sold (COGS), indicating the efficiency of a company in using its labor and supplies.