Gradable Assignment 2 - Answer Any 3 questions Each question carries 5 marks 1 Big Bird Air is legally obligated to purchase 50 jet engine from ERUS at

Gradable Assignment 2 - Answer Any 3 questions Each...

This preview shows page 1 - 2 out of 4 pages.

Answer Any 3 questions. Each question carries 5 marks 1.Big Bird Air is legally obligated to purchase 50 jet engine from ERUS at the end of two years at a price of $ 200000 per engine. Confident that it is protected from opportunism with this contract, Big Bird begins making aircraft bodies designed to fit ERUS’s engines. Due to unforeseen events in the aerospace industry, in the second year of the contract ERUS is in the brink of bankruptcy. It tells Big Bird that unless it increase the engine price to $300000, it will go bankrupt.a. What is the first thing should the manager of Big Bird Air do?
Image of page 1
Image of page 2

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture