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On February 1 of the current year, TBC contracts with TEI to sell 1220 trumpets to TEI with the delivery schedule for the month of
On February 1 of the current year, TBC contracts with TEI to sell 1220 trumpets to TEI with the delivery schedule for the month of February the contract price is 590 per trumpet however the contract includes the possibility of a volume discount if the total annual purchases exceed a given amount. Discounts are given in the first picture. These discounts are retroactive what is the volume triggers met TBC refunds to GEI amounts on previous purchases TBC believes that it is 12% likely that it will not contract with TEI again this year. TBC believes the following probability estimates are accurate. The picture of the probability estimates are below. Using the most likely amount approach what is the estimate of consideration amount in this contract? The estimation of consideration amount in the contract is?
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