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of the costs to be performed under the R & D Agreement as of
December 31, 1981, Gross made an analysis of each aspect of the
costs to be incurred in fulfilling that agreement. For that
purpose, Gross first noted that neither HJI nor Whittaker had
prepared a cost estimate at the time the project was first
entered into nor a project plan outlining what was going to be
done for the consideration. He also established that at the
outset of the project there was no cost accounting system that
would specifically identify the costs allocated to JDP. Gross
therefore used data that Whittaker had maintained for 1984
through 1989 to estimate for each activity15 the per acre
contract expenditures that would be required under the contract
on a year-by-year basis. He quantified these costs on a 60-acre
15 Gross segmented the activities under the R & D Agreement for
1981 through 1984 as follows:
For 1981-82: Project planning; land acquisition; land
clearing and planing; installation of irrigation; construction of
the pilot model; initial planting.
For 1983-84: Cultivation; fertilization (including analysis
and tissue analysis); irrigation; plant growth analysis;
harvesting; yield analysis.
For 1985-86: Cultivation; irrigation; fertilization
analysis; tissue analysis; harvesting; yield analysis.
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