Question
ABC got a contract for a two year period and began on January 1, 2020. On July 1, 2020, DEF Corporation sent notice to ABC
ABC got a contract for a two year period and began on January 1, 2020. On July 1, 2020, DEF Corporation sent notice to ABC Corporation that they were terminating the contract immediately because they had found another supplier who could fulfill their raw material needs at a lower cost. ABC Corporations sales price to DEF Corporation for the raw material was $100,000 per ton of the material. They projected supplying 300 tons of the raw material annually to DEF Corporation. Their fixed overhead was $50,000 and their variable overhead was $10,000 per ton. Do a calculation of what your total damage figure would be based on this information and specify any additional information you would like to know to perform a more detailed calculation. Discount rate was 2 %. (Please show calculations)
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