I need this question answer general Accounting ABS Fabricating Co. (ABS) and Xeno Corp. (Xeno) agreed orally thatABS would custom manufacture a compressing unit for Xeno at aprice of $120,000. After ABS completed the work at its own cost of$90,000, Xeno notified ABS that the compressing unit was no longerneeded. ABS is holding the compressing unit and has requestedpayment from Xeno. ABS has been unable to resell the compressingunit for any price. ABS has also incurred storage fees of $2,000 to holdthe compressing unit. If Xeno refuses to pay ABS and ABS sues Xeno,the most ABS will be entitled to recover is:A) 92,000B) 105,000C) 120,000D) 122,000

Step 1: Define Manufacturing CostManufacturing cost means the cost which is related to the…

Answered: ABS Fabricating Co. (ABS) and Xeno…

Business Its Legal Ethical & Global Environment

10th Edition

ISBN:9781305224414

Author:JENNINGS

Publisher:JENNINGS

Chapter12: Contracts And Sales:introduction And Formation

Section: Chapter Questions

Problem 10QAP

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