On May 6,Robbie Entered into a Signed Contract with Ed,whereby

question 61

Multiple Choice

On May 6,Robbie entered into a signed contract with Ed,whereby Robbie agreed to sell Ed a painting with a fair market value of $350,000 for $130,000.Robbie believed the painting was worth only $130,000.Unknown to either party,the painting was destroyed by fire on May 4.If Ed sues Robbie for breach of contract,Robbie's best defense is:

• A)risk of loss had passed to Ed.
• B)lack of adequate consideration.
• C)mutual mistake.
• D)unconscionability.

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Definitions:

Units Sold

The total number of product units that have been sold during a specific period.

Degree of Operating Leverage

A ratio that measures the effect of a change in sales on operating income by analyzing fixed versus variable costs.

Sales Increase

The rise in the amount of goods or services sold over a specific period, indicating business growth.

Net Operating Income

Measures the profit a company generates from its core business operations, excluding expenses related to interest and taxes.