Sudarshan bails a certain quantity of "first grade" petrol, to be stored safely till the end of march 2011. raghman, without the consent of sudarshan mixes the first grade petrol with his own "second grade" petrol on 1 st april, 2011, when sudarshan asked raghman for his first grade petrol raghman tells him to take the bailed quantity of petrol out of the mixed petrol. sudarshan refused to take the mixed petrol and instead claims the prices of the "first grade" petrol, which is higher than "second grade". raghman refuses to compensate sudarshan for the above on the ground of impossibility of performance. question: whether raghman is liable to compensate sudarshan for the loss.

Fanning company is considering the addition of a new product to its cosmetics line. the company has three distinctly different options: a skin cream, a bath oil, or a hair coloring gel. relevant information and budgeted annual income statements for each of the products follow. skin cream bath oil color gel budgeted sales in units (a) 110,000 190,000 70,000 expected sales price (b) $8 $4 $11 variable costs per unit (c) $2 $2 $7 income statements sales revenue (a × b) $880,000 $760,000 $770,000 variable costs (a × c) (220,000) (380,000) (490,000) contribution margin 660,000 380,000 280,000 fixed costs (432,000) (240,000) (76,000) net income $228,000 $140,000 $204,000 required: (a) determine the margin of safety as a percentage for each product. (b) prepare revised income statements for each product, assuming a 20 percent increase in the budgeted sales volume. (c) for each product, determine the percentage change in net income that results from the 20 percent increase in sales. (d) assuming that management is pessimistic and risk averse, which product should the company add to its cosmetics line? (e) assuming that management is optimistic and risk aggressive, which product should the company add to its cosmetics line?