answer: Ed tells #Person1# two bad news. The first is that their sales have dropped. The market is in recession and they have no way of moving their inventory or getting rid of their staff. The second news is that their supplier suffered QC problems and half of their production is faulty.
documents: #Person1#: . . . Now that we have been over the gory details of our disastrous first quarter, Ed! Give us some good news. How are things looking for us in termsof sales this month? 
  #Person2#: Uh well. . . would you like the bad news first or the really bad news? 
  #Person1#: What? Ed, don't tell me you only have bad news! 
  #Person2#: Well sir, our sales have dropped, no plunged, fifty percent in the past month alone. We are currently overstocked and overstaffed and our profits arefalling fast. The market is in recession and we have no way of moving our inventory, or getting rid of our staff. If we consider redundancies, it would cost us a fortune because of the new regulations governing compensation packages. It's a real mess. 
  #Person1#: For crying out loud. . . How fast are we losing money? 
  #Person2#: Um. . . how can I put this? Let's just say that at this pace, we will be filing for Chapter eleven in less than three months. 
  #Person1#: What! Geez! How could this have happened? So what's the bad news? 
  #Person2#: Oh, that's the really bad news. Our supplier suffered QC problems and, well, half of our production is faulty. We're going to have to recall all itemssold in the last quarter. And the worst part? We're going to have to shoulder this cost. 
  #Person1#: Are you joking? Get the supplier on the line now! They have to assume the costs of this mess! 
  #Person2#: We tried that, sir. The factory has gone under and the owner apparently has fled the country. 
  #Person1#: We're doomed! 
  #Person2#: There is some really good news though! 
  #Person1#: Really? What! 
  #Person2#: I got offered a new job!