Concerned, Sarah headed to the purchasing department where Jack hesitantly tells her that market prices have skyrocketed. The combination of the recently declared war and a huge hurricane in Florida has driven lumber prices to unusually high levels. A new look at the project estimates shows them that the projected losses are significant. In addition to the current contracts in progress, the company signed several additional fixed price contracts to complete in the coming year. The contracts were bid based on Jack’s projection of standard lumber prices.