Pablo contracts to sell his house and lot to katie for $1 million dollars. the terms of the contract call for katie to make deposit of 10 percent of the purchase prices as a down payment. the terms further stipulate that should the buyer breach the contract, pablo will retain the deposit as liquidated damages. katie makes the deposit, but because he expected financing of $900,000 balance falls through, she breaches the contract. a few weeks later, palbo sells the house and lot to maria for $1,050,000. katie demands her $100k back, but pablo refuses, citing that katie's breach and the contract terms entitle him to keep the deposit. discuss who is correct.

Cadbury has a chocolate factory in dunedin, new zealand. for easter, it makes two kinds of “easter eggs”: milk chocolate and dark chocolate. it cycles between producing milk and dark chocolate eggs. the table below provides data on these two products. demand (lbs per hour) milk: 500 dark: 200 switchover time (minutes) milk: 60 dark: 30 production rate per hour milk: 800 dark: 800 for example, it takes 30 minutes to switch production from milk to dark chocolate. demand for milk chocolate is higher (500lbs per hour versus 200 lbs per hour), but the line produces them at the same rate (when operating): 800 lbs per hour. a : suppose cadbury produces 2,334lbs milk chocolate and 1,652 lbs of dark chocolate in each cycle. what would be the maximum inventory (lbs) of milk chocolate? b : how many lbs of milk and dark chocolate should be produced with each cycle so as to satisfy demand while minimizing inventory?