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Jennifer Lopez enters into a contract with Whole Foods to advertise their organic green smoothies on her social media. Whole Foods agrees to pay Jennifer
Jennifer Lopez enters into a contract with Whole Foods to advertise their organic green smoothies on her social media. Whole Foods agrees to pay Jennifer a fixed price of $10,000/month for 8 months. In addition, at the end of the 8 months, Whole Foods will pay a bonus depending on how many social media users click on her advertisements. Jennifer estimates the probabilities of the respective bonus payments below. If Jennifer recognizes variable consideration according to the expected value method, how much total revenue should she recognize each month of the contract? User Clicks Bonus Payment Probability 0 - 1 million $0 30% 1 million - 2 million $50,000 40% > 2 million $80,000 30% $5,500 $15,500 $6,250 $16,250
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