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Please show how to solve this question. Ware Brass Corp. (WBC) is a wholesaler that sells musical instruments to retailers. On February 1 of the
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Ware Brass Corp. (WBC) is a wholesaler that sells musical instruments to retailers. On February 1 of the current year, W contracts with Lemer Extravaganza, Inc. (LEI) to sell 1,400 trumpets to L with delivery scheduled for the month of February. The contract price is $700 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 to view additional information.) Using the most-likely-amount approach, what is the estimate of the consideration amount in this contract? The estimate of consideration amount in the contract is $ 950,600 - Probability estimates - X Discount percentage Discount Percentage These discounts are retroactive-once a volume trigger is met, WBC refunds to LEI amounts on previous purchases. WBC believes that it is 18% likely that it will not contract with LEI again this year. WBC believes the following probability estimates are accurate: Total Sales Probability If Total Sales Equal or Exceed $1,280,000 $2,080,000 $4,580,000 3% 4% 8% $ 980,000 18% $ 1,280,000 46% $ 22% % Print Done 2,080,000 4,580,000 $ 14%Step by Step Solution
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