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Shasta Corp. manufactures computers. Shasta enters into a contract with New Age retailers to manufacture and sell 100,000 computers to New Age. Delivery is to occur in two months. One month passes, and several of Shasta's part suppliers have dramatically raised prices. Shasta knows it will lose $500,000 on the contract with New Age, so Shasta writes to New Age and states that is cannot deliver the computers at the current contract price. Which of the following is correct:

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