Gravel pit and orders


ABC Gravel Co, Inc. needs a replacement bucket for its steam shovel to continue operating its gravel pit and orders one for $20,000 from Quarries, Inc. ABC tells Quarries that it must receive the new bucket by Tuesday or it will lose $50,000. Quarries agrees, but ships the new bucket late. Stony can recover:

a. $20,000

b. $50,000

c. $0

d. $70,000

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Business Management: Gravel pit and orders
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