Morlane, an industrial cleaning contractor, remains bound for another 3 years by a contract to clean a customer's site. After the rise in wages, performing the contract will cost it 84,000 a year (cost of fulfilling calculated in accordance with the standard, case data), while the customer pays it 50,000 a year. Early termination would cost it compensation of 180,000. The effect of discounting is not material. What amount does Morlane provide for?
- Annual cost of fulfilling
- 84,000
- Annual fee received from the customer
- 50,000
- Remaining years
- 3
- Early termination compensation
- 180,000