The profit-maximizing pricing in this case is $13, taking into account that the company is producing 5 units and that it must expand because the price is higher than the marginal cost.
What do you mean by marginal cost, exactly?The difference in total production costs caused by creating or producing an extra unit is known as the marginal cost in economics. Divide the variation in production costs by the variation in quantity to determine marginal cost.
What are marginal cost and profit?Marginal cost refers to the additional cost or profit incurred when producing the next item. Marginal product is the additional revenue generated, whereas marginal cost is the additional cost incurred for manufacturing one extra unit.
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abc, inc. has purchased a factory for $150,000 with an expected useful life of 6 years or 50,000 hours of use. they use the machine 5,000 hours per year to produce their product. the expected salvage value is $25,000. what will the depreciation expense be for each year? what will be the balance of accumulated depreciation? assume you are using the following methods: a. straight-line b. double-declining balance c. units-of-production
The straight-line is $31,250. While the double-declining balance is $8,670 the units-of-production is $2.5.
The computation of the depreciation expense for the second year can be seen below:
a) Straight-line method:
= (Original cost - residual value) ÷ (useful life)
= ($150,000 - $25,000) ÷ (6 years)
= ($125,000) ÷ (4 years)
= $31,250
In this method, the depreciation is same for all the remaining useful life
(b) Double-declining balance method:
First we have to find the depreciation rate which is shown below:
= One ÷ useful life
= 1 ÷ 6
= 0.17
= 17%
Because of the rate is double So, 2 x 17% = 34%
In year 1, the original cost is $150,000, so the depreciation is $25,500 after applying the 34% depreciation rate
In year 2, the $25,500 × 34% = $8,670
(c) Units-of-production method:
= (Original cost - residual value) ÷ (estimated production)
= ($150,000 - $25,000) ÷ ($50,000)
= ($125,000) ÷ ($50,000)
= $2.5 per miles
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if a portfolio had a return of 12%, the risk-free asset return was 4%, and the standard deviation of the portfolio's excess returns was 25%, the sharpe measure would be
The sharpe ratio for a portfolio with return of 12%, risk-free asset return of 4% and excess return of 25% will be 32%.
Write a short note on Sharpe ratio.In finance, the Sharpe ratio compares an investment's performance to a risk-free asset after accounting for its risk. It is calculated by dividing the difference between the returns on the investment and the risk-free return by the standard deviation of the returns on investments. It is a way to gauge how much more money an investor makes for each unit of increased risk.
The Sharpe ratio aims to demonstrate how well an asset's return makes up for an investor's assumed risk.
To solve the question :
Sharpe Ratio will be calculated using the formula :
= (Rp−Rf)/σp
where,
Rp = return of portfolio
= 12/100
= 0.12
Rf = risk-free rate
= 4/100
= 0.04
σp = standard deviation of portfolio’s excess return
=25/100
= 0.25
Therefore, Sharpe Ratio will be:
= (Rp−Rf)/σp
= (0.12 - 0.04)/0.25
= 0.08/0.25
= 0.32 or 32%
Hence, the Sharpe ratio is 32%.
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Company sold inventory with a selling price of to customers for cash. It also colected sales taxes of. The journal entry to record this information includes a.
When the products are sold to the final buyer, the associated sales taxes should be deducted from the cost of inventory and recorded as an expense. The balance sheet shows the cost of inventory.
If you treat inventory as non-incidental materials and supplies, you can write off the cost of the item when it is used or consumed, not when you purchased it. The reverse of incidental materials and supplies is that you can quickly write everything off.
You give the completed
You subtract cost of commodities sold and credit the inventory of finished items. By doing this, the items are moved from inventory to costs. You would record a bookkeeping entry for a cash transaction and credit the sales revenue account for the sale when you sell the $100 item for cash.
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all adjustments to the unadjusted book balance on a bank reconciliation require journal entries, but adjustments to the unadjusted bank balance do not require journal entries. group startstrue or false
Only changes to the unadjusted cash (book) balance necessitate journal entries. Adjustments to the unadjusted bank balance are items that have already been recorded in the company's records, such as deposits in transit and outstanding checks. Thus, the right choice is true.
What is a journal entry?A journal entry is an act of keeping or making records of any commercial or non-commercial transaction.
Journal entries can capture one-time events or ongoing events like depreciation or bond amortization. Journal entries are frequently entered in a different module from accounts payable, which normally has its own sub-ledger that impacts the main ledger indirectly. As a result, journal entries immediately affect the general ledger account balances. A correctly documented journal entry includes the right date, amount(s) to be debited, amount to be credited, transaction narrative, and a unique reference number.
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sales of abc corporation's digital video cameras are rising rapidly, profits are peaking, and competitors are entering the market. abc is able to maintain its market lead. judging from this example, the digital video camera is in which stage of the product life-cycle?
Judging from this example, the digital video camera is in Growth of the product life-cycle.
The period of time between a product's introduction to the market and its removal from the shelves is known as its life cycle.
When a product is first introduced to the market, a company frequently pays more for marketing, but as product adoption increases, sales increase.
A product's life cycle has four stages: introduction, growth, maturity, and decline.
The growth stage follows if the product is a success. It is distinguished by increasing demand, rising production, and expanding availability. Different industries and products will require different lengths of time for a company's product to enter the growth phase.The product's popularity and recognizability increase during the growth phase. Even if a product faces fierce competition, a company may still decide to spend a lot of money on advertising. Instead of introducing their products to the market, marketing campaigns are more likely to focus on how their product stands out from the competition. A company may also improve a product's functionality in response to customer feedback.The growth phase of the product life cycle has a positive financial impact on revenue and sales. As rival products are offered by the competition, there is more competition, which could force the company to lower its prices and experience lower margins.Learn more about Product life cycle, here
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many people believe that, despite ongoing financial innovations, cash will always be with us to some degree as a form of money. what core principle could justify this view
Many people believe that despite ongoing financial innovations, cash will always be with us to some degree as a form of money. The core principle to justify this view is the 3rd core principle – information is the basis for decisions.
In making any investment decision, information is crucial. The more data that should be gathered the more crucial the decision. We can obtain less information if the choice is not as significant or costly.
For instance, if your investment is a stick of candy floss, you generally won't perform a thorough investigation of the market when you're paying for it at the shop's counter.
However, you have compelling reasons to acquire a ton of information regarding the purchase if you're considering investing $800,000 in a home. Thus the answer to this question is, information is the basis for decisions.
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conversion to an e-commerce or m-commerce system enables organizations to increase the accuracy of order processing and order fulfillment. group of answer choices true false g
Conversion to an e-commerce or m-commerce system enables organizations to increase the accuracy of order processing and order fulfillment is true.
What is e commerce?
The action of electronically purchasing or reselling goods using online services via the Internet is known as e-commerce (or electronic commerce). Mobile commerce, electronic funds transfers, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data gathering systems are just a few of the technologies that are used in e-commerce. The greatest sector of the electronics industry, e-commerce is fueled by the technological developments of the semiconductor sector.
The word was created and used for the first time by Dr. Robert Jacobson, Principal Consultant to the Utilities & Commerce Committee of the California State Assembly, in the 1984 law's title and text. It was sponsored by the late Gwen Moore (D-L.A.), the committee's chairwoman.
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the distribution to employees of a percentage of the company's profits is known as . multiple choice question.
Profit sharing, system via which employees are paid a share of the internet income of the employer that employs them, in accordance with a written system defined in advance.
Such payments, which can also fluctuate in accordance to revenue or wage, are distinct from and extra to regular earnings.
What are the advantages of income sharing?This approves businesses to limit their tax liability and extend their savings. Employers additionally do not have to fear about paying their employees in years when earnings might also be low.
Example of Profit-Sharing Plans
Suppose a company, ABC corporation, earns an annual income of $500,000. This agency employs three employees, X, Y, and Z. Now, all the employees earn an income of $400,000, $200,000, and $400,000, respectively. The organisation has a coverage of a 10%profit sharing plan.
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https://brainly.com/question/1777823#SPJ4Raheem is currently working as a financial analyst earning $75,000 a year and is considering quitting his current job to start an art gallery. The estimated annual revenue from the art gallery is $175,000. The annual cost of labor, advertising, and acquiring the art inventory is $125,000. What are raheem’s accounting and economic profits if he opens the art gallery?.
Raheem's accounting profit is $50,000 and his economic profit is $-25,000.
What is the accounting and economic profit?
Accounting profit is the difference between the revenue earned from a business and the explicit cost incurred in running the business. Explicit cost includes the amount expended in running the business.
Accounting profit= total revenue - explicit cost
Accounting profit = $175,000 - $125,000 = $50,000
Economic profit is the difference between accounting profit and implicit cost. Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.
Economic profit = accounting profit - implicit cost
Economic profit = $50,000 - $75,000
Economic profit = -$25,000
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mary signed up and paid $1,200 for a 6-month ceramics course on june 1st with choplet ceramics. as of august 1st, choplet's accounting records would indicate:
On June 1st, Mary signed up for and paid $1,200 for a 6-month ceramics course with Choplet Ceramics. Cholet's accounting records would show $400 in revenue and $800 in deferred revenue as of August 1st.
A ceramic is any of the hard, brittle, heat-resistant, and corrosion-resistant materials created by molding and firing an inorganic, nonmetallic material, such as clay, at a high temperature. Earthenware, porcelain, and brick are common examples.
The term "ceramic" is derived from the Greek word (keramikos), which means "of pottery" or "for pottery," and o (keramos), which means "potter's clay, tile, pottery." The Mycenaean Greek ke-ra-me-we, workers of ceramic, written in Linear B syllable writing, is the first documented usage of the root "ceram-." Ceramic can be used as an adjective to describe a substance, product, or process, or it can be used as a noun, either singular or plural, as in "ceramics."
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how are aggregate supply and stagflation related? stagflation usually causes an adverse shift in aggregate supply. an adverse supply shift usually causes stagflation. stagflation only follows inflation, with no relation to aggregate supply. there is no relationship between the two.
Aggregate supply and stagflation are related as an adverse supply shift usually causes stagflation.
Stagflation is the natural result of monetary pumping, which slows the rate of economic growth while increasing the rate of price increases for goods and services."Stagflation is a type of economic condition characterized by slow economic growth, high unemployment, and rising prices.
It is characterized by three negative characteristics: slower economic growth, higher unemployment, and higher prices.This is not a combination that should exist according to economic logic. When people have less money to spend, prices should not rise.
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orange corporation begins business on april 2, 2017. the corporation reports startup expenditures of $64,000 all incurred last year. determine the total amount that orange can elect to deduct in 2017.
Determine the total amount that orange can elect to deduct in 2017 = $3,200
deductible amount (5,000- (64,000-50,000))
amortizable amount (64,000-0)/180 * 9 months
0+3200 = 3200
Total cost is the total amount of fixed expenses (fixed costs) and variable expenses (variable costs) issued by the company. Usually, companies calculate it per unit sold and multiplied by the number of items produced.
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How many of the following costs related to a refrigerator would be considered a capital expenditure? replace broken shelf install new water filter replace power cord replace door seals.
If the refrigerator is being used for personal use, then the costs of replacing the shelf, installing the new water filter, and replacing the power cord would be considered capital expenditures.
However, if the refrigerator is being used for business purposes, then the cost of replacing the door seals would be considered a capital expenditure.Installing a new water filter and replacing the power cord would be considered capital expenditures, as they are improvements made to the refrigerator that will increase its lifespan. Replacing a broken shelf and door seals would be considered maintenance costs, as they are necessary repairs that keep the fridge functioning properly.
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matics A
Select the correct answer from each drop-down menu.
The function f(x) = 500(1+2015)4 models the balance in a savings account.
The savings account had an initial balance of
and compounds
Reset
Next
at an interest rate of
Answer:
50%
Explanation: i worked out the problem and got that answer
a third party can perform contractual obligations on behalf of the promisor (who of course remains responsible for proper performance) except in circumstances where c) a business has taken on more work than it can complete. a) personal performance is required. e) the original promisor dies. b) the contract is silent on the issue of performance. d) the original promisor goes bankrupt.
A third party can perform contractual obligations on behalf of the promisor, when the original promisor dies.
Contracts? Why do you say that?An agreement between parties that produces mutually binding legal obligations is known as a contract. Mutual assent, conveyed through a contract-compliant offer, adequate consideration, capacity, and legality are the key elements required for the agreement to be a valid offer and acceptance.
What are the terms of business contracts?A contract is an agreement between two parties that places a duty of performance on one of them. These are required for a contract to be enforceable in court.
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as a health professional you would use several solutions in treating patients for a variety of issues. assume you need a solution of 2mm sucrose. you find a bag of 20 mm sucrose while looking for what you need in the supply closet. what is the difference between the two solutions?
The concentration of glucose in the two solutions, 2M and 20M sucrose, is about different.
Sucrose is a naturally sweet simple carbohydrate. Fruits and plants contain it. Sucrose is an oligosaccharide and could be a sugar made up of subunits of glucose and ketohexose. The major component of white sugar is this, which occurs naturally in plants. Disaccharide is extracted and processed from either sugarcane or sugar beet for human use.
Considering, In a sterile 50 mL tube under the hood PSM, 18 grams of glucose are dissolved in 50 ml of 2 M sucrose solution before filter-sterilizing it. In a 100 ml volume of 20 M sucrose solution, however, 20 grams of solution are combined with 100 ml of solution.
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beta electronics issued its 5%, 10-year bonds payable at a price of $845,000 (face value is $800,000). the company uses the straight-line amortization method for the bond discount or premium. interest expense for the first year is:
The company uses the straight-line amortization method for the bond discount or premium making the net Bond Interest Expense $35,500.
$[tex]\frac{45,000}{10}[/tex] years = $4,500 per year.
The amount of cash paid for interest is $800,000 ×.05 = $40,000.
making the net Bond Interest Expense $40,000 - $4,500 = $35,500.
A part of every charge goes toward the loan essential, and an element goes towards interest. as the mortgage amortizes, the quantity going in the direction of the fundamental starts offevolved out small, and regularly grows larger month through the month.
In accounting, amortization refers to expensing the acquisition value minus the residual value of intangible property in a systematic manner over their estimated "useful economic lives" on the way to reflect their intake, expiry, obsolescence, or every other decline in price because of the use or the passage of time.
Amortization schedules show how a mortgage's most important stability owed goes down over time because of the quantities of overall most important and interest paid growth. because the loan progresses, more of a charge is applied to the essential stability owed, and much less is paid in the hobby.
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ayana enjoys cycling and is in the market for a new bicycle. she is fairly knowledgeable about bikes and knows most of the major brands, such as trek, cannondale, specialized, and giant, and will likely purchase one of these brands. these four brands are
Ayana adores riding and is looking for a new bike. She is somewhat knowledgeable about bikes and is familiar with the majority of the big brands, including Trek, Cannondale, Specialized, and Giant, and will most likely purchase one of these brands. These four brands are being considered. As a result, the appropriate term is a consideration.
What does the term "consideration" mean?A promise, performance, or forbearance bargained by a promisor in exchange for their promise is referred to as consideration. A contract's fundamental component is a consideration. A contract cannot be enforced unless it is considered by both parties.
The four forms of consideration are as follows.
Executed Consideration. Past ConsiderationConditional Consideration Unreal Consideration.To learn more about consideration, click
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much research and development are needed to create the next iphone. do companies capitalize and amortize research and development costs over the life of the product, or are research and development costs expensed as incurred?
Companies capitalize and amortize research and development costs over the life of the product. R&D expenses are direct spending related to a company's efforts to create, design, and improve its goods, services, technology, or processes.
R&D expenditures are often highest in the industrial, technological, health care, and pharmaceutical sectors. Development The cost of purchasing and developing the sites, including engineering and legal fees, streets, roads, utilities, minimum essential administrative costs, necessary equipment, and estimated interest that the borrower cannot pay from other sources, is referred to as the goods, services. Discretionary fixed costs are typically the result of annual management decisions to spend on specific fixed cost categories.
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1. What is public relations? Give an example of a public relations activity. (1 point)
the balance sheet of innovative products reports total assets of $470,000 and $670,000 at the beginning and end of the year, respectively. the cash return on assets for the year is 20%. calculate innovative products' net cash flows from operating activities (operating cash flows) for the year.
The innovative products' net cash flows from operating activities (operating cash flows) for the year of the operating cash flow is $171,000
The calculation is as follows:
Beginning Total Assets $470,000
Ending total assets $670,000
Average Total Assets in use $570,000 ($470,000 + $670,000) ÷ 2
Cash return on Asset 30%
Cash Flow from operating activities
= Average Assets × 30%
= $570,000 × 30%
= $171,000
the quantity of coins or coins equivalent that the organization gets or gives out via the manner of a fee(s) to creditors is referred to as cash flow. cash float analysis is often used to analyze the liquidity position of the agency.
coins waft is defined as the quantity of money coming into and leaving your commercial enterprise over a given time period. coins waft is crucial because it enables you to satisfy your existing economic duties as well as plan for your destiny.
A ratio less than 1 suggests quick-time period coins float issues; a ratio extra than 1 suggests exact monetary fitness because it shows coins flow extra than enough to fulfill brief-term monetary responsibilities.
the important thing distinction between cash glide and earnings is even as profit indicates the amount of cash left over in any case charges had been paid, coins waft shows the internet waft of cash into and out of an enterprise.
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auditor most likely would assess control risk at high if the payroll department supervisor is responsible for:
Auditor most likely would assess control risk at high if the payroll department supervisor is responsible for approving adjustments to payroll rates for all employees.
You must have proof that the relevant controls were operationally effective for the whole period for which you intend to rely on them in order to determine control risk for particular assertions at a level lower than the maximum for the financial statement audit.
You will now have finished your control testing and be able to evaluate the control risk associated with each assertion for the purposes of your financial statement audit. For the purposes of your internal control audit, you will also be able to draw a provisional conclusion about the efficacy of the controls at CX-15. (When you have finished your substantive audit procedures, you will have reached your final conclusion regarding the efficacy of internal controls.) You should make sure that your financial statement audit's control risk assessments (High, Moderate, and Low) are consistent
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a problem is listed below. identify its type. jose received $400 for his birthday from his family. he wishes to buy a motorcycle and decides to use his birthday money towards it. he'd like to have a bigger down payment so he invests his money in a saving account that pays 7% per year compounded quarterly. if jose purchases the motorcycle in 2 years, how much will he have available towards the down payment for his motorcycle? a) future value with simple interest b) effective rate c) simple interest d) future value with compound interest e) present value with compound interest f) none of the above.
For the down payment for his motorcycle, he will have $458.47 available.
Describe the down payment.
A down payment for a house is the cash up front provided by the buyer in real estate deals and other big acquisitions. For a property being used as a primary residence, down payments, which are typically a percentage of the purchase price, can range from as little as 3% to as much as 20%.
Calculation:
P = 400, t = 2, r = 0.07
Compounded quarterly, so n = 12/4 = 3.
We have to find A.
[tex]A=P(1+\frac{r}{n} )^{nt}[/tex]
[tex]A=400(1+\frac{0.07}{3} )^{3*2} \\A=400(1.023)^{6} \\A=458.47[/tex]
He will have $276.10 ready for his motorcycle's down payment.
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Question 7, 2008 WAEC. Kofi is a dealer in general merchandise. The following are his transactions for the month of June, 2002. June 1: Sold goods to Mensah Le 20,000 less 10% trade discount. June 4: Purchases from Kwesi the following: 200 iron rods at Le20 each 100 fillers at Le30 each June 6: June 7: June 9: Invoice subject to 10% trade discount. Purchased from Asante Ltd., 10 bottles of gin at Le 30 each. Returned 60 iron rods purchased on 4th June, to kwesi. Sold the following to Kojo: 300 bags of cement at Le15 each, Less 15% trade discount, 150 tins of target at Le10 per tin. June 18: Kojo returned 10 bags of cement bought on the 9th of June. June 20: Sold to Jones 80 iron rods at Le50 each 110 bags of cement at Le16 each 250 fillers at Le35 each Invoice subject to 50% trade discount June 21: Jones was allowed 50% reduction on the total invoice price for goods damaged in transit. June 30: Purchased from Femi: 100 bags of cement at Le 15 each 50 gallon of oil paint at Le20 each 300 metal sheets at Le18 each You are required to write up the following: (a) sales day book (b) sales returns book (d)purchases returns book purchases day book.
Answer: Table uploaded in the Explanation Section
Explanation:
KOFFI SALES DAY BOOK
DATE QTY DESCRIPTION UNIT PRICE (N) AMOUNT (N) TOTAL (N)
1-Jun Mensah
Goods 20, 000
Less 10% Trade Discount (2, 000) 18, 000
9-Jun Kojo
300 Bags of Cement 15 4, 500
Less 15% Trade Discount -675 3, 825
150 Tins of Target 10 1, 500
5, 325
20-Jun Jones
80 Iron rods 50 4, 000
110 Bags of Cement 16 1, 760
250 Fillers 35 8, 750
14, 510
Less 15% Trade Discount (2, 177) 12, 333
35, 658
KOFFI PURCHASES DAY BOOK
DATE QTY DESCRIPTION UNIT PRICE (N) AMOUNT (N) TOTAL (N)
4-Jun Kwesi
200 Iron rods 20 4, 000
100 Fillers 30 3, 000
Less 10% Trade Discount -700 6, 300
6-Jun Asante Ltd
Bottles of Gin 30 300
30-Jun Femi
100 Bags of Cement 15 1, 500
50 Gallons of Oil Paint 20 1, 000
300 Metal Sheets 18 5, 400 7, 900
14, 500
SALES RETURNS BOOK
DATE QTY DESCRIPTION UNIT PRICE (N) AMOUNT (N)
18-Jun Kojo
10 Bags of Cement 15 150
2,250
PURCHASES RETURNS BOOK
DATE QTY DESCRIPTION UNIT PRICE (N) AMOUNT (N)
7-Jun Kwesi
60 Irons rod 20 1, 200
1, 200
which section of the uniform commercial code defines course of performance as the history of dealings between the parties in the particular contract at issue?
UCC 1-303 (B) section of the uniform commercial code defines the course of performance as the history of dealings between the parties in the particular contract at issue.
A Uniform commercial code is a uniform state law adopted for all commercial transactions in the United States. Uniform commercial code ensures that the terms in business and finances will be treated uniformly in all the courts of the US. This eases the firms to enter into business contracts and relations as the contract will be treated uniformly across the US.
The course of performance refers to a sequence of conduct during transactions between the parties. The course of dealing refers to the old transactions that have taken place between the parties and established an understanding between the parties.
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If the government levies a $5 tax per ticket on buyers of nfl game tickets, then the price paid by buyers of nfl game tickets would?.
The price paid by buyers of NFL games will increase by less than $5
A tax is a mandatory charge imposed on products and services by the government or a government agency. Taxes drive up a product's cost and both the buyer and the seller are required to pay the taxes as it is a compulsion imposed by the govt. The price of the ticket would rise by less than $5 if a $5 tax were imposed on them. Both buyers and sellers would be responsible for the $5 tax. The burden of the tax would fall mostly on the party with the less elastic demand and supply.
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you have just won a $5 million lottery to be received in twenty annual equal payments of $250,000. what will happen to the present value of your winnings if the interest rate increases during the next 20 years? it will be worth more it will not change none of the above it will increase then decrease
You have just won a $5 million lottery to be received in twenty annual equal payments of $250,000. The present value of your winnings if the interest rate increases during the next 20 years will be worth less.
Answers - it will be worth less.
What is an example of worthless?
Worthless is to describe something that has no use or isn't worth any money. Your old broken-down car, a stamp collection with no value, and your no-good room-mate who never cleans and won't pay his share of the rent could all be known as worthless.
What helps with feeling worthless?
Here are some ideas that can help those suffering from feelings of worthlessness:
Be kind to yourself. Think about how you talk to yourself.Practice gratitude.Be mindful of the context of your emotions.Practice forgiveness—and that includes for yourself.Consider helping others.Learn more about worthless here:- https://brainly.com/question/24864915
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how do we know that there is going to be inflation in the economy, i.s., what is the breeding-ground for inflation?
We can know there is going to be inflation when the price of commodities rises.
The cost of living in a nation or the general increase in prices are two examples of broad measures used to describe inflation. People can understand it as the progressive loss of purchasing power brought on by price increases. The effects of inflation, which raises the cost of necessities like food, can be detrimental to society and affect everyone directly.
Most of the commodities being produced can experience inflation, including necessities like housing, food, healthcare, and utilities as well as wants like jewellery, cars or other luxury items. Once inflation is pervasive throughout an economy, both consumers and businesses share a common concern about the possibility of future inflation.
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which result would have been expected in the hawthorne studies had it been based on the principles of scientific management
Employees want to be pleased at work, according to Hawthorne scientific management. The findings were unexpected: productivity improved for reasons unrelated to economics.
Finally, researchers found that job performance improved because workers were given more attention. The Mayo's discoveries from the Hawthorne tests laid the foundations for the importance of management style as a major contributor to industrial productivity, interpersonal skills as vital as monetary incentives or target-setting, and a more humanistic approach as a means of gratifying. The Hawthorne Works had commissioned a research to discover if its employees would be more productive in higher or the lower light levels.
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the ultramares v. touche case of 1933 held that a cause of action based on negligence could not be maintained by a third party who was not in contractual privity; however, it did leave open the possibility that:
The Ultramares V. Touche case of 1933 found that a cause of action based on carelessness could not be maintained by a third party who was not in contractual privity, it did left open the possibility that third parties could sue in the case of fraud or constructive fraud.
The idea of privity of contract is a common law theory that states that a contract cannot confer rights or impose responsibilities on anybody who is not a party to the transaction. The concept is that only contract parties should be able to sue to protect their rights or seek damages. However, the doctrine has proven troublesome due to its consequences for contracts signed for the benefit of third parties who are unable to enforce the contracting parties' responsibilities. Contractivity exists exclusively between the parties to contract, which is most typically a contract of sale of commodities or services. Horizontal privity occurs when the advantages of a contract are to be distributed to a third party.
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