Waldo Washes Windows with Worldwide Window Washers

question 54

Multiple Choice

Waldo washes windows with Worldwide Window Washers.Waldo has just begun the second year of a 3-year contract that pays him $30,000 per year.Even though Waldo has performed his job perfectly,he was suddenly told that his contract was being terminated.Waldo was offered a couple of other jobs shortly after this contract was terminated.The first was as a custodian in a city 200 miles away paying $24,000 a year.The second was as a cook in a local fast food restaurant paying $22,000 a year.Waldo took neither job.In connection with his duty to mitigate,which of the following is true?

• A) Waldo would not be obligated to accept the custodian job.
• B) Waldo would not be obligated to accept the cook job.
• C) Waldo would be obligated to accept neither job.
• D) Waldo would be obligated to accept one of the jobs,but the choice of which one was up to Waldo.
• E) Waldo is not obligated to accept any job of any kind for the duration of the contract that was breached.

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Definitions:

Average Cost Per Unit

The total cost of production divided by the total number of units produced, providing a cost measure per single unit.

Inventory

The goods and materials a business holds for the ultimate goal of resale or production.

Units

A basic measure or quantity of product one of something, often used in the context of production, sales, or inventory.

Inventory Cost Flow

A method used to value and manage inventory, determining the cost of goods sold and ending inventory.