$437500 is the aditional cost of purchasing 1250 stock in market( $1100each vs &750)?

Question

B enterd into oral contract to sel QE 2000 stock a monthat $750/onepaying cash.QE told B it buying stock to fuifil a parallel 6 mts contract with I. sPECIALY CHARTERING A SHIP TO DELIVER STOCK TO I. I contract was expressly subject to QL law. QE has to pay
1- $500000 for failing entirely six sipments
2- $250/head for delivering less than 2000 in a sipment
3- $25,000/day late delivery penalty for 7 days and I can cancel that shipment
for damages to I.
B'se of rise of prices B adviced QE 10 days befor next due supply.
* B couldnt supply stock at agreed price
* Unless QE AGREE TO 4250 PER HEAD PRICE INCREASE , then B would not be suply further six month
Following B failure to suply QE had option to buy from open market and it was able only to buy 1250 on average price $1100. As a result of this
* it cost QE extra $125000 to recharter the ship that it initialy cancelled on B refusal to supply
* delivery of the shipment to I was five days late.
Advice QE on its rights & remedi

Answer 1

buy low, sell high