Milo Files a Suit Against Nisa Corporation Under the Doctrine

question 35

Multiple Choice

Milo files a suit against Nisa Corporation under the doctrine of promissory estoppel.Milo must show that​ 

• A) ​Milo justifiably refused to ful fill a promise to Nisa. 
• B) ​Milo justifiably relied on Nisa's promise to his detriment. 
• C) ​Nisa justifiably refused to ful  fill a promise to Milo. 
• D) ​Nisa justifiably relied on Milo's promise to its detriment.

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Definitions:

Variable Cost

Costs that change in direct proportion to changes in the levels of production or sales activities, such as materials and labor costs.

Relevant Range

The range of activity or volume over which the assumed cost behavior is valid, beyond which cost patterns and relationships may change.

Average Costs

The total costs divided by the number of units produced, giving a per unit cost average.

Total Variable Cost

The sum of all costs that vary with output level, including materials, labor, and other costs that increase with production volume.