Scobie Brass Corp. (SBC) is a wholesaler that sells musical instruments to retailers. On February 1 of the current year, S contracts with Pinder Extravaganza,Inc. (PEI) to sell 1,200 trumpets to P with delivery scheduled for the month of February. The contract price is $600 per trumpet. However, the contract includes the possibility of a volume discount if total annual purchases exceed a given amount. 

Using the most-likely-amount approach, what is the estimate of the consideration amount in this contract?

These discounts are as follows:

Transcribed Image Text:

Discount Percentage If Total Sales Equal or Exceed $1,020,000 $1,820,000 $4,320,000 Print Done Discount Percentage 2% 4% 6% .X Discount Percentage If Total Sales Equal or Exceed $1,020,000 $1,820,000 $4,320,000 Print Done Discount Percentage 2% 4% 6% .X

Answer rating: 100% (QA)

Sollution Step calculation of estimated es sales of SBC Total Seeles 120000 1020000 1820000 4320... View the full answer