Two roommates lived together in a modest apartment for many years, during which time the female roommate purchased many items of furniture for the apartment. these items were worth roughly $10,000. when the female roommate decided to relocate across the country for a large promotion, she told the male roommate he could have all of the furniture when she left at the end of the month, as he had a much lower income. he wrote a long -you note telling her he was grateful. the next day at work, before the female roommate read the note, she learned that her promotion fell through and she decided to stay in the apartment. at the end of the month, can the male roommate enforce the female’s promise to give him the furniture?

Make or buy eastside company incurs a total cost of $120,000 in producing 10,000 units of a component needed in the assembly of its major product. the component can be purchased from an outside supplier for $11 per unit. a related cost study indicates that the total cost of the component includes fixed costs equal to 50% of the variable costs involved. a. should eastside buy the component if it cannot otherwise use the released capacity? present your answer in the form of differential analysis. use negative sign represent a net disadvantage answer; otherwise do not use negative signs with your answers. cost from outside supplier $answer variable costs avoided by purchasing answer net advantage (disadvantage) to purchase alternative $answer b. what would be your answer to requirement (a) if the released capacity could be used in a project that would generate $50,000 of contribution margin? use negative sign represent a net disadvantage answer; otherwise do not use negative signs with your answers.