To Succeed in a Product Liability Suit Based on Strict

question 5

True/False

To succeed in a product liability suit based on strict liability,a plaintiff must prove that a product was defective.

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Definitions:

Fixed Costs

Costs that do not change with the level of production or sales activities, such as rent, salaries, and insurance.

Contribution Margin Ratio

The percentage of each sales dollar that contributes to covering fixed costs and generating profit.

Break-Even Point

The sales level at which total revenues equal total costs, resulting in neither profit nor loss.

Fixed Costs

Costs that do not change with the level of production or sales over a certain range and period, such as rent, salaries, and insurance premiums.