Cutter Company Makes and Sells Table Saws,which Are Designed to Be

question 70

Essay

Cutter Company makes and sells table saws,which are designed to be safe if used properly.Erin buys a Cutter saw and lends it to her neighbor Frank.To reach a toolbox on a high shelf in his garage,Frank props the saw at an angle against a cabinet and climbs onto the saw.Frank loses his footing,slips off the saw,falls on the blade,and is injured.He files a product liability suit against Cutter,on the ground of negligence.On what basis could the maker prevail?

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Definitions:

Indirect Cost

Costs not directly traceable to a specific product or project, such as utilities or rent.

Contribution Margin

The difference between sales revenue and variable costs, indicating how much contributes to covering fixed costs and generating profits.

Direct Manufacturing Cost

Costs that are directly attributable to the production of a specific product, including direct materials and direct labor.

Indirect Manufacturing Cost

Costs related to production that are not directly associated with the product, such as maintenance, supervision, and utilities.