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Explain Please Wilco Inc. agrees to manufacture a large order of 10,000 classroom lecterns for Seminole Corporation. Wilco will be paid $1,000,000 if the order
Explain Please
Wilco Inc. agrees to manufacture a large order of 10,000 classroom lecterns for Seminole Corporation. Wilco will be paid $1,000,000 if the order is delivered within 3 months. There is a $100,000 penalty for each month that the order is late. Wilco's production manager estimates that there is an 20% chance that the order will be completed and delivered within 3 months, a 70% chance that the order will be one month late, and a 10% chance that the order will be two months late. Wilco's accounting department recognizes revenues involving variable consideration using the expected value approach. How much revenue should Wilco's accountants recognize? $900,000$830,000$910,000$1,000,000 Step by Step Solution
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