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Until Recently, Tamara Worked in a Warehouse, Earning $3000 a Month

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Until recently, Tamara worked in a warehouse, earning $3000 a month. She was required to quit her job, however, after being injured in a skiing accident that was tortiously caused by Buck. That injury required Tamara to spend two months in the hospital. After being discharged from the hospital, Tamara was further required to complete an intensive physiotherapy program over the course of a month. At the end of that month, her physician told her that while she could not return to work in a warehouse, she should immediately take up employment in a less demanding (and lower paying) job. Nevertheless, for the next two months, Tamara chose to do nothing at all beyond watching television and listening to music. As her financial difficulties deepened, she eventually decided to re- train as a secretary. She therefore enrolled in a three- month secretarial course, for which she was required to pay a total of $3000. At the end of that course,Tamara promptly returned to workforce, this time as a secretary at a salary of $2000 per month. Exactly one year has now passed since Tamara began working as a secretary. How much is she entitled to receive from Buck by way of damages for lost income in the past?


Definitions:

Static Planning Budget

is a budget based on a fixed level of activity and does not change with actual activity levels, useful for planning but less so for performance evaluation.

Unfavorable Activity Variance

This term describes a situation where actual costs exceed the standards or budgeted amounts, leading to a negative variance.

Static Planning Budget

A budget based on a fixed level of activity, without adjusting for any variations in actual performance, useful for initial planning.

Flexible Budget

A budget that adjusts or varies with changes in the volume of activity, revenue, or other factors influencing budgeting.

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