Berner Building Inc Agreed to Build a House to Certain

question 13

Essay

Berner Building Inc agreed to build a house to certain specifications for Kendra.The total contract price was $500 000.A term in that contract required Berner to use marble from a certain region in northern Italy in the main bathroom.By mistake,Berner used marble from a region in southern Italy instead.The value of the marble was the same in either event.Kendra nevertheless is unhappy.Because she had once enjoyed a wonderful honeymoon in northern Italy,she was very upset that her demands were not met.She insists that Berner should be required to renovate her bathroom using proper materials.That job would cost $25 000 and it would not increase the value of the house at all.Is Kendra entitled to any remedy? Explain your answer.

---

Definitions:

Controllable Costs

Expenses that can be managed or influenced by decisions made by a company's management.

Noncontrollable Costs

Costs that cannot be influenced or altered by the actions of a manager or business unit, often determined by external factors.

Variable Costs

Costs that change in proportion to the level of goods or services that a business produces, such as raw materials and labor expenses.

Fixed Costs

Expenses that remain constant for a specific period regardless of changes in the volume of production or services provided.