Billy runs a bakery and sells egg tarts.His business has been booming in recent years because the Chief Minister of the state is a regular customer of his shop and made his shop famous.In view of the escalating demand of customers for egg tarts, Billy had recently ordered 2 more new ovens from Snoopy Engineering Ltd.These cost RM 20,000.00 and were supposed to be delivered to Billy last Monday.There was a delay in delivery and the ovens did not arrive until last Saturday.As a result of late delivery, Billy suffers the following losses:

(a)With the 2 new ovens, Billy would have sold 2,000 more egg tarts a day.The 5-day delay in delivery results in a loss of profit of RM30,000.00 because Billy could make a RM3.00 profit out of each egg tart.

(10 MARKS)

(b)The Mickey Mouse Hotel was responsible for food and catering services for an international conference held in the Exhibition Centre.The Hotel placed a special order for fruit tarts with Billy's shop last Monday.The fruit tarts had to be delivered on Saturday.Due to the delay in delivery of the 2 ovens, Billy could not deliver the fruit tarts to the Mickey Mouse Hotel.As a result, Billy suffers another loss of profit of RM100,000.00.

Advise Billy on the damages he may recover as a result of the late delivery of the 2 ovens by Snoopy Engineering Ltd.

(10 MARKS)