Parthenon Bookstore orders 500 copies of the book Charlotte's Web from Definite Distribution at a price of $2 each (for a total order cost of $1000) for delivery by May 15. The shipping container containing the books sinks on the journey to the United States. On April 20, Definite Distribution notifies Parthenon Bookstore that due to the sinking and other supply chain issues, it will not be able to deliver any of the books. This incident has a couple of consequences:
Consequence I: Parthenon is able to find another supplier that can deliver 500 copies of Charlotte's Web. But, Parthenon has to pay this other supplier $5 per book (for a total order cost of $2500), and the books will not be delivered until June 15.
Consequence II: Parthenon had formed a contract to resell all 500 copies of Charlotte's Web to Summer Fun Camp to distribute to campers as a reading project. Summer Fun Camp was going to pay Parthenon $6 a book. But, since Summer Fun Camp started on June 1 and needed the books before camp began, Parthenon lost the sale to Summer Fun Camp. Parthenon has not been able to find another buyer for the books, since most school programs have already ordered their summer reading books.