You signed a contract with a supplier for a new product line
that you plan to display and sell, and now the supplier is in
default and will not deliver the product. You sent the seller a
down payment of $10,000. You expanded your store to accommodate the
shipment from the supplier and that expansion cost $50,000. You
expect to sell the product for $4 per part on annual sales volume
of 100,000. Your COGS is $1 per part. You’ve spent $25,000 on legal
fees and you want the seller to pay punitive damages of $50,000.
How much are you entitled to in damages?
$360,000
$525,000
$425,000
$460,000