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The Joint was run by four enterprising young men: Arora in-charge of purchasing, Bansal in-charge of mixing, Cabral specializing in making the pellets out of the mixed material, and D'Souza in-charge of selling. In June, Arora bought enough raw materials to make 270 units of LSP as agreed upon by the group in advance, but D'Souza owing to heavy involvement in other personal activities could book orders only for 216 units of LSP. Bansal from his long experience in the line knew that the shelf life for LSP is very short compared to LSD or opium and prepared enough mixture for 216 units of LSP. Cabral who got enough mixture to make 216 units of LSP ended up making only 207 finished units with not a trace of the mixture leftover. He was so dazed that he could not even explain how he produced less than what he was supposed to. Total consumption of raw materials for June was as follows: LSD 200 units, all from units bought in June @ $11/unit. Opium 40 units, all from units bought in June @ $4.50/unit. Materials cost was their only cash cost, though they all thought that their time was worth $10/- Page 1 of 2 Page 1 of 2 per hour. In fact, all of them had enough free time to spare for the joint. Investigations showed that Arora had paid a premium of 10 percent on the standard price for LSD as he got carried away by a cute little tourist from whom he bought it. When he came to his senses, he realized his folly and tried to make for it by getting a 10 percent discount on the standard price of opium. When Cabral came to know that Arora paid a lower price for opium, he (Cabral) claimed that his pellet making got fouled up because of the 'lower quality' opium. Interestingly he never gave this explanation until he knew about the actual price paid for the raw materials. Though DSouza claimed earlier that he sold less units than the budgeted 240 units, as he had to go to Calcutta on a private trip, investigations showed that he had lost sales because he jacked up the price by 10 percent on the standard price of Rs.40 per unit of LSP. He did, however, bring in the revenue to the Joints account at the higher realization per unit. 1. Who has contributed in loss of profits and how much? You may attempt to determine the responsibility of each individual in terms of contribution in gain or loss of profits

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