Lady and the Tramp Student Coaching SlidesContracts are Legally Enforceable AgreementsContracts: Missing or Ambiguous termsContracts: Custom & UsageInvasion of PrivacyInvasion of PrivacyGross MarginSales RevenueContribution to OverheadDirect CostProfit before TaxFuture ValuePowerPoint PresentationLady and the TrampStudent Coaching SlidesContracts are Legally Enforceable AgreementsContracts are agreements enforced by courts consistent with the parties’ intention at the time they entered the agreementCourts seek to protect the reasonable expectations of the parties: The court will interpret based on what the parties agreed to, not what the court thinks is fair or bestContracts: Missing orAmbiguous termsIf contractual terms are missing or ambiguous, a court will supply missing terms or clarify ambiguities to the extent that the court can determine what the parties intended at the time they entered the agreement.However, they do not substitute terms based what the court feels is “right” or “fair.”Contracts: Custom & UsageIn trying to interpret the parties’ intent on entering a contract, courts sometimes look to terms that may have been implied but not specified in an agreement.In some industries, certain terms are routinely used and may be assumed to exist in contracts, even if it is not specifically spelled out.Courts look to an industry’s “custom and usage” in trying to determine whether an ambiguous or missing contractual term was implied through standard industry practice.Invasion of PrivacyThere are four different types of invasion of privacy:–Intrusion on privacy or solitude–Public disclosure of private information–Placing someone in a “false light” (i.e. giving a wrong and damaging impression about someone)–Commercial appropriate of one’s name or likenessWhich of these four might apply to this case?Invasion of PrivacyPeople have the right to commercialize their name or image, including their likeness (for example, a photo of a model) or their voice (for example, an actor doing the voice of a cartoon character.) People may give their “consent” to having their name or image commercialized, which occurs, for example, when an athlete is paid to sponsor a product.Gross MarginGross Margin or Gross Profit is sales revenue minus cost of goods sold. This definition is for a retailer or manufacturer, not a service company. Footnotes under the project income statement explain what is included in each account. Footnotes to the financial statements provide readers information that help them better understand the accounting rules, assumptions and items in the statements.Sales RevenueSales revenue represents the amount that a company records for sales of products or services.Contribution to OverheadContribution to overhead represents the amount that a product or project generates after it covers all of its direct costs. It represents the amount that would be lost in profit if the product was discontinued, assuming that overhead is not affected by the product.Direct CostA direct cost is an item that can be traced directly to a product. It is a cost that would be avoided if no production and sales of this product took place.Profit before TaxProfit before tax is the amount that is left after all expenses are subtracted from revenue, including an allocation of Buena Vista’s cost of running its operations. Taxes are not allocated to products/projects in this company.Future value represents the amount that will accumulate at a future time given an investment amount and an interest rate.Future value calculations that can be done in excel or with a hand held calculator. The basic formula for the future amount is: amount (1+interest rate per period)^number of periodsFuture