Devon Makes a Contract with Edie That Indirectly Benefits Felipe

question 21

Multiple Choice

Devon makes a contract with Edie that indirectly benefits Felipe.Neither Devon nor Edie intended this result.This is

• A)a delegation.
• B)an assignment.
• C)a third party beneficiary contract.
• D)not a delegation,an assignment,or a third party beneficiary contract.

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Definitions:

Break-even Sales

The point at which total sales equal total expenses, resulting in no profit or loss.

Fixed Costs

Expenses that do not change with the level of goods or services produced by a business, such as rent, salaries, and insurance.

Variable Costs

Expenses that change in proportion to the activity of a business, such as materials and labor costs that vary with production volume.

Operating Income

Earnings from a company's core business operations, excluding expenses and revenues that are unrelated to the primary activities.