When a buyer refuses to accept goods that have already been manufactured by the seller, which of the following is true regarding the seller's computation of damages?

Multiple Choice

• The seller must compute damages based on the "profit" the seller lost when the buyer did not go through with the contract.
• The seller may cancel the contract only if the goods are not in transit from the seller to the buyer.
• The seller must compute damages on the difference between the contract price and the market price at which the goods are currently selling.
• The seller may compute damages based on the difference between the contract price and the market price at which the goods are currently selling; and, if this does not put the seller in as good a financial position as if the contract had been performed, the seller may base damages based on lost profit and overhead.