In July 2010, Jack Brabman decides to open a car-yard specializing in high-end cars manufactured in...

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In July 2010, Jack Brabman decides to open a car-yard specializing in high-end cars manufactured in Germany, France and Italy. He obtains the exclusive distribution rights for the following European cars: the Alpha, the Beta, the Gamma and the Delta. This means that Jack is the only car-yard in Australia selling these cars. For each of the past five years, Jack receives the following annual revenue of $1 million from the car yard, based on the make of car sold: Alpha $250,000 Beta $350,000 Gamma - $175,000 Delta - $225,000 In June 2020, 2021 and 2022, Jack received a special award from Alpha for achieving the highest worldwide sales in that year. He received a gold cup worth $60,000 that was in the shape of an Alpha car that he proudly displays in the car yard office. The gold cup is owned by the Alpha family in Italy so he is not able to sell the cup. On 1 December 2022, Gamma announces that they are terminating the exclusive distribution agreement that Gamma has with Jack for the distribution of the Gamma car. Gamma pays Jack the amount of $2million dollars to compensate him for the termination. Gamma also tells Jack that they are giving the exclusive Australian distribution right to sell the Gamma car to Luigi, Jack's competitor. Jack still has the rights to sell the Alpha, Beta and Delta cars in Australia. One night in early January 2023, Jack's showroom catches fire, and is completely destroyed. Jack purchased the property in 2010 for $500,000. No cars are damaged in the fire. On 5 February 2023, he receives $1.5m in compensation for the loss of the building. Jack decides that the time is ripe to leave the car business. In May 2021, he enters into an agreement with Luigi, allowing Luigi to use Jack's exclusive distribution rights for the Alpha, Beta and Delta cars for five years, in return for an annual payment of 10% of the price of the cars that Luigi sells in his car-yard in each year. In July 2010, Jack Brabman decides to open a car-yard specializing in high-end cars manufactured in Germany, France and Italy. He obtains the exclusive distribution rights for the following European cars: the Alpha, the Beta, the Gamma and the Delta. This means that Jack is the only car-yard in Australia selling these cars. For each of the past five years, Jack receives the following annual revenue of $1 million from the car yard, based on the make of car sold: Alpha $250,000 Beta $350,000 Gamma - $175,000 Delta - $225,000 In June 2020, 2021 and 2022, Jack received a special award from Alpha for achieving the highest worldwide sales in that year. He received a gold cup worth $60,000 that was in the shape of an Alpha car that he proudly displays in the car yard office. The gold cup is owned by the Alpha family in Italy so he is not able to sell the cup. On 1 December 2022, Gamma announces that they are terminating the exclusive distribution agreement that Gamma has with Jack for the distribution of the Gamma car. Gamma pays Jack the amount of $2million dollars to compensate him for the termination. Gamma also tells Jack that they are giving the exclusive Australian distribution right to sell the Gamma car to Luigi, Jack's competitor. Jack still has the rights to sell the Alpha, Beta and Delta cars in Australia. One night in early January 2023, Jack's showroom catches fire, and is completely destroyed. Jack purchased the property in 2010 for $500,000. No cars are damaged in the fire. On 5 February 2023, he receives $1.5m in compensation for the loss of the building. Jack decides that the time is ripe to leave the car business. In May 2021, he enters into an agreement with Luigi, allowing Luigi to use Jack's exclusive distribution rights for the Alpha, Beta and Delta cars for five years, in return for an annual payment of 10% of the price of the cars that Luigi sells in his car-yard in each year.

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Jack received 1 million annual revenue from 20102015 from car sales Alpha 250000 Beta 3... View the full answer