Aria Asks Jessica If She Can Borrow an Outfit for an Office

question 77

Multiple Choice

Aria asks Jessica if she can borrow an outfit for an office party and Jessica agrees.When Aria picks an outfit,Jessica refuses to give it to her.Which of the following statements is true of this situation?

• A) Jessica has committed a breach of contract.
• B) A bargained-for exchange has not occurred, so Jessica does not have to loan the outfit to Aria.
• C) Jessica has promised Aria something of value, so she must loan her the outfit.
• D) The contract between Aria and Jessica is terminated as Aria makes a counteroffer.
• E) Jessica has given a valid consideration, thereby making the agreement between her and Aria a binding contract.

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Definitions:

Margin Of Safety

A figure that indicates the possible decrease in sales that may occur before an operating loss results; may be expressed in terms of sales dollars, sales units, or percent of current sales.

Unit Selling Price

The price at which a single unit of a product or service is sold, not accounting for discounts or modifications.

Sales

The revenue generated from the sale of goods or services by a company during a particular period.

Unit Contribution Margin

The amount of revenue per unit sold that exceeds the variable costs involved in producing that unit.