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4. Determined to carry on the hilarious tradition of placing a number of pink plastic flamingos in another person's yard as a practical joke, and with several co-workers in mind, Dorothy Hayes orders 100 pink plastic flamingos (for a total contract price of $500) from Tropical Novelties of Tampa, Inc. The contract specifies delivery of the flamingos to Dorothy's home in Poughkeepsie, New York on or before September 1. On August 31, Amalgamated Package Service (A. P. S.) delivers five large boxes to Dorothy's home. With much anticipation, Dorothy tears open the boxes, only to find 50 pink plastic flamingos, 50 short of the specified contract quantity. Disappointed that Tropical Novelties did not satisfy its "part of the bargain," and realizing that $500 is a large amount to pay for a practical joke, Dorothy decides to terminate the contract. She calls Tropical Novelties, speaks with a sales representative, notifies the seller that she is canceling the contract due to its non-performance, and informs the seller that she will be returning the 50 flamingos by package delivery service the following day. Tropical Novelties demands that she keep the 50 flamingos, notifies her that they will ship the remaining 50 the following day, and assures her that she will be held responsible for paying the $500 contract price. Who wins?
Stine Company applies manufacturing overhead to jobs at an overhead rate of 60% of direct labor cost. Job No. 429 is completed during this month.
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