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Otter Brass Corp. (OBC) is a wholesaler that sells musical instruments to retailers. On February 1 of the current year, OBC contracts with Owen Extravaganza,
Otter Brass Corp. (OBC) is a wholesaler that sells musical instruments to retailers. On February 1 of the current year, OBC contracts with Owen Extravaganza, Inc. (OEI) to sell 800 trumpets to OEl with delivery scheduled for the month of February. The contract price is $400 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.) (Click the icon for additional information.) Using the expected-value approach, what is the estimate of the consideration amount in this contract? (Enter a "0" for any zero values.) Probability estimates These discounts are retroactive-once a volume trigger is met, OBC refunds to OEI amounts on previous purchases. OBC believes that it is 18% likely that it will not contract with OEI again this year. OBC believes the following probability estimates are accurate
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