Assignment Study Plan Results Pearson eTe Multimedia Chapter Res Dynamic St Modules Communica EP8-6 (book/static) Binco...

 

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Assignment Study Plan Results Pearson eTe Multimedia Chapter Res Dynamic St Modules Communica EP8-6 (book/static) Binco Brass Corp. (BBC) is a wholesaler that sells musical instruments to retailers. On February 1 of the current year, BBC contracts with Music Extravaganza, Inc. (MEI) to sell 1,000 trumpets to MEI with delivery scheduled for the month of February. The contract price is $500 per trumpet. However, the contract includes the possibility of a volume discount if total annual purchases exceed a given amount. These discounts are as follows: (Click the icon to view the discount percentage.) Total Annual Sales $ 500,000 $ 1,000,000 $ 2,000,000 $ 5,000,000 Total Discount Percentage All parts showing % % % % Enter any number in the edit fields and Consideration Amount for the 1,000 Trumpets i Probability Discount percentage If Total Sales Equal or Exceed $1,000,000 $2,000,000 $5,000,000 Print % % % % Done Expected Consideration Discount Percentage 1% 2% 5% X These discounts are retroactive-once a volume trigger is met, BBC refunds to MEI amounts on previous purchases. BBC believes that it is 15% likely that it will not contract with MEI again this year BBC believes the following probability estimates are accurate: (Click the icon to view the probability estimates.) r All Using the expected-value approach, what is the estimate of the consideration amount in this contract (Enter a "0" for any zero values.) iProbability estimates $ $ $ $ Total Sales 500,000 1,000,000 2,000,000 5,000,000 Question Help Print Probability 15% 60% 20% 5% Done € Check Answer X Assignment Study Plan Results Pearson eTe Multimedia Chapter Res Dynamic St Modules Communica EP8-6 (book/static) Binco Brass Corp. (BBC) is a wholesaler that sells musical instruments to retailers. On February 1 of the current year, BBC contracts with Music Extravaganza, Inc. (MEI) to sell 1,000 trumpets to MEI with delivery scheduled for the month of February. The contract price is $500 per trumpet. However, the contract includes the possibility of a volume discount if total annual purchases exceed a given amount. These discounts are as follows: (Click the icon to view the discount percentage.) Total Annual Sales $ 500,000 $ 1,000,000 $ 2,000,000 $ 5,000,000 Total Discount Percentage All parts showing % % % % Enter any number in the edit fields and Consideration Amount for the 1,000 Trumpets i Probability Discount percentage If Total Sales Equal or Exceed $1,000,000 $2,000,000 $5,000,000 Print % % % % Done Expected Consideration Discount Percentage 1% 2% 5% X These discounts are retroactive-once a volume trigger is met, BBC refunds to MEI amounts on previous purchases. BBC believes that it is 15% likely that it will not contract with MEI again this year BBC believes the following probability estimates are accurate: (Click the icon to view the probability estimates.) r All Using the expected-value approach, what is the estimate of the consideration amount in this contract (Enter a "0" for any zero values.) iProbability estimates $ $ $ $ Total Sales 500,000 1,000,000 2,000,000 5,000,000 Question Help Print Probability 15% 60% 20% 5% Done € Check Answer X

Answer rating: 100% (QA)

Solution In order to determine the transaction price for the contract to sell 1000 trumpets BBC sums ... View the full answer