Answer the Following Questions Using the Information Below

question 49

Multiple Choice

Answer the following questions using the information below:
Gerry's Generator Supply is approached by Mr. Sandman, a new customer, to fulfill a large one-time-only special order for a product similar to one offered to regular customers. Gerry's Generator Supply has excess capacity. The following per unit data apply for sales to regular customers:

-If Mr. Sandman wanted a long-term commitment for supplying this product, what price would most likely be quoted to him?

• A)$2,000
• B)$2,150
• C)$2,580
• D)$2,800

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Definitions:

Customary Fee

A charge or payment that is considered typical or usual within a particular industry, market, or legal context based on long-standing practices.

Apparent Authority

A situation in which a reasonable person would understand that an agent had the authority to act, even if the agent didn't have such authority.

Express Agency

An agency relationship formed by explicit oral or written agreement between the agent and the principal.

Implied Agency

A situation where an agency relationship is inferred from the actions of the parties rather than an explicit agreement.