## Q68 key (Damages Report Error Hunt)

1. Lost profit is $8,400,000 times 40 percent, or $3,360,000, not $3,780,000. The arithmetic overstatement is $420,000. Missed: the report's first line is accepted despite contradicting its own margin.
2. Only $420,000 of the $620,000 emergency freight is separately recoverable because $200,000 was already included in variable costs. Missed: the same freight is deducted in the margin and then added as damage.
3. The $1,500,000 attrition profit and $2,200,000 enterprise-value diminution capitalize the same future cash flows and are alternatives, not cumulative. The report overstates by the entire measure not selected. Missed: future loss is counted twice under different labels.
4. The $480,000 fixed overhead addition is duplicative because the 40 percent contribution margin already retained fixed overhead by excluding it from avoided variable cost. Missed: continuing overhead appears in both margin and a separate line.
5. Past-damage base is corrected lost profit $3,360,000 plus incremental freight $420,000, or $3,780,000. Simple interest at 6 percent for two years is $453,600. No interest applies to future attrition or enterprise value. Missed: compound interest is applied to duplicated future damages.
6. Attrition-method total is $3,780,000 past damages plus $1,500,000 future attrition plus $453,600 interest, or $5,733,600. The report overstates that alternative by $9,640,488 minus $5,733,600, or $3,906,888. Missed: critique says inflated without quantifying the corrected destination.
7. Enterprise-value-method total is $3,780,000 plus $2,200,000 plus $453,600, or $6,433,600. The report overstates that alternative by $3,206,888. Missed: defense subtracts both alternatives rather than preserving one supported measure.
8. Demand the native margin workbook and ledger for the 60 percent ratio, customer schedules for lost revenue, freight invoices and coding for the $200,000 overlap, both future-loss models for common cash flows, the overhead schedule, and the native interest formula. Missed: an exclusion request lacks the workpaper-to-error connection.
9. Serve a targeted supplementation demand within ten days, disclose the corrected arithmetic in the defense report, depose the expert after production, and then move to limit cumulative future loss, fixed overhead, duplicated freight, and interest if not withdrawn. Missed: Granite Arc relies on rhetoric or files before preserving a precise correction record.