Henricks Company Has the Following Information Available What Is the Gross Margin and Net Income?
A) $200,000;

question 75

Multiple Choice

Henricks Company has the following information available:
$\begin{array}{ll}\text { Revencie }&\$500,000\\\text { Variable production costs }&\$100,000\\\text { Fixed production costs }&\$100,000\\\text { Variable selling costs } & \$ 50,000 \\\text { Fixed selling costs } & \$ 50,000\end{array}$
What is the gross margin and net income?

• A) $200,000; $200,000
• B) $250,000; $150,000
• C) $300,000; $200,000
• D) $400,000: $200,000

Identify factors considered by courts in determining the legality and enforceability of agreements based on public policy.

Understand the concept of unconscionability and its types (procedural and substantive) in contract law.

Recognize the legal implications of exculpatory clauses in contracts.

Understand the concept of adhesion contracts and their potential for unconscionability.

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Definitions:

Top-Of-The-Line

Describes products, services, or goods of the highest quality available within a specific category or market segment.

Price Elasticity of Demand

A measure of how sensitive the quantity demanded of a good is to a change in its price.

Elastic

Refers to a market for a product or service that is price sensitive; that is, relatively small changes in price will generate fairly large changes in the quantity demanded.

Specific Brand

A particular brand that is identified by its unique name, symbol, or design, used to distinguish it from other brands within the same category.