On January 1, 2008, QRS contracts to perform data-processing services for Acme under a one-year contract for $500,000. The cost of performing the services is $400,000, evenly incurred over the one-year period. QRS has five other similar data-processing contracts. On July 1, after having paid QRS $250,000 under the contract, Acme breaches the contract by wrongfully alleging that QRS’s performance is unsatisfactory. On July 2, QRS secures a new six-month contract to perform data-processing services for Third Party for $250,000. Estimated costs for QRS to perform the new contract are $125,000. QRS also files a lawsuit against Acme to recover the outstanding balance on the QRS-Acme contract ($250,000). At trial it is established that QRS can only handle six contracts at one time. What should be QRS’s recovery?
Question 6 options:

$0, because QRS entered into a mitigating contract with Third Party.

$50,000, the amount of lost profits under the QRS-Acme contract.

$100,000, the amount of lost profits under the QRS-Acme contract.

$250,000, the remaining amount Acme was required to pay to QRS under the QRS-Acme contract.