Question

Anita runs a business supplying furniture for special events. She has a contract to provide 100 chairs for Bob's 60thbirthday garden party, for $500. On the morning of the party, Bob and his helpers are setting up for the day's celebrations. Anita arrives, but she has only brought 93 chairs. She first speaks to Bob's nephew, Jasper. When he hears that only 93 chairs have arrived, Jasper quickly gets into his car to go find another furniture hire business. He finds one that will provide 7 similar chairs, for a cost of $63. When Anita sees Bob inside, and tells him she has only brought 93 chairs, Bob is angry. Anita claims that Bob must pay her the full $500, but Bob disagrees. Is Anita entitled to any payment (and if so, how much)?

Answer 1

She is entitled to a pro-rated payment of $465.00

Step-by-step explanation:

You would take the $500 and divide it by the 100 chairs. That is $5 a chair. Then multiply $5 x 93. That is $465.