[Carpet Woes] Joaquin went shopping at ABC Carpet. He saw some carpet he liked but could not make up his mind. The manager at ABC Carpet wrote down the proposed purchase price for him along with a statement that the price would be good for three months. Two months later, Joaquin went back to ABC Carpet to purchase the carpet. Unfortunately, the price had gone up. Joaquin showed the manager his writing and guaranteed price, but the manager said that the offer was no longer good. Frustrated with ABC Carpet, Joaquin decided to purchase his carpet from XYZ Carpet, and he also contracted with XYZ to do the installation. Unfortunately, Joaquin almost immediately started to have problems with the carpet. Joaquin told the sales manager for XYZ Carpet that he was planning on bringing a suit for breach of warranty. The sales manager, however, told him that breach of warranty provisions only applied to sales of goods and that the carpet purchase was for installation, a service. What kind of offer did the manager at ABC Carpet make to Joaquin

P8-4b dropping unfavorable division based on the following analysis of last year's operations of groves, inc., a financial vice president of the company believes that the firm's total net income could be increased by $160,000 if its design division were discontinued. (amounts are given in the thousands of dollars.) required provide answers for each of the following independent situations: a. assuming that total fixed costs and expenses would not be affected by discontinuing the design division, prepare an analysis showing why you agree or disagree with the vice president. b. assume that the discontinuance of the design division will enable the company to avoid 30% of the fixed portion of cost of services and 40% of the fixed operating expenses allocated to the design division. calculate the resulting effect on net income. c. assume that in addition to the cost avoidance in requirement (b), the capacity released by discontinuance of the design division can be used to provide 6,000 new services that would have a variable cost per service of $60 and would require additional fixed costs totaling $68,000. at what unit price must the new service be sold if groves is to increase its total net income by $180,000?