Question
In answering the problem please do as thorough a calculation as you can based on the facts presented.In addition, and as part of your answer,
In answering the problem please do as thorough a calculation as you can based on the facts presented.In addition, and as part of your answer, please state any additional information you would like to see to do a more thorough calculation.In performing the calculations relating to these problems assume a discount rate of 2% a year and use the probability of dying table.The employer's share of FICA tax is 7.65%
Age Probability of Dying Probability of Being Alive
56 -- 1.000000
57 -- 1.000000
58 0.009315 0.990685
59 0.009951 0.990049
60 0.010610 0.989390
61 0.011321 0.988679
62 0.012105 0.987895
63 0.013010 0.986990
64 0.014070 0.985930
65 0.015319 0.984681
You have been hired as an expert witness in a lawsuit filed by ABC Corporation based on the wrongful termination of a contract.ABC Corporation entered into a contract with DEF Corporation to supply raw material for one of DEF Corporation's manufacturing processes.The contract was for a two year period and began on January 1, 2017.On July 1, 1017, 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 Corporation's sales price to DEF Corporation for the raw material was $100,000 per ton of the material.They projected supplying 3 million tons of the raw material annually to DEF Corporation.Their fixed overhead was $500,000 and their variable overhead was $20,000 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.
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