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In the onerous contract example in the notes, why the market price used was 22 and not 30 whilst the fall in price was in the month of december and not for the rest of the months. Also which two months should be used. Should it be the two months other than december in which case it should be 30 and not 22 or is it the last two months in which case it should be 30 for one month and 22 for the next.
We are looking to find the amount to be provided for under the onerous contract and so we are using the information in the question regarding what would happen if we ceased the current operations.