
EBK THE LEGAL ENVIRONMENT OF BUSINESS:
10th Edition
ISBN: 9781337516051
Author: Miller
Publisher: YUZU
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Chapter 7, Problem 1IS
Summary Introduction
Case summary: The company R manufactures tire rims and sells it to the company S that installs them on cars. One set of rims was defective and was installed on the car by the company S without any inspection. Then, the car with the defective rims was sold to the company T that further sold the car to the person U. The car got involved in an accident due to the defective rims and the person U got injured.
To find: Liability of the company S.
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Splish Brothers Express reports the following costs and expenses in June 2022 for its delivery service.
Indirect materials used
$7,460
Drivers' salaries
$18,560
Depreciation on delivery equipment
12,920
Advertising
5,480
Dispatcher's salary
5,800
Delivery equipment repairs
348
Property taxes on office building
1,060
Office supplies
754
CEO's salary
13,920
Office utilities
1,160
Gas and oil for delivery trucks
2,480
Repairs on office equipment
222
Determine the total amount of (a) delivery service (product) costs and (b) period costs.
Delivery service (product) costs
Period costs
- / 12.5
III
Contribution margin????
What is the average cost per snowmobile, including overhead?
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