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HH Lumber had an exclusive three-year supply agreement with NP Construction. The contract called for lumber sales of $3,000,000 per year. After one year, NP Construction canceled the contract without cause. The court found NP Construction liable under the contract. HH Lumber had average gross profits of 25 percent and average net income of 10 percent of sales. HH Lumber's operating expenses average 60 percent fixed. The damages from the loss of this contract would be:
A. |
$600,000.
|
|
B. |
$570,000.
|
|
C. |
$3,000,000.
|
|
D. |
$1,140,000. |
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