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Suppose X company supplies agricultural products to Y Manufacturers on the basis that it will supply 144000 tons during the year, with shipments of 1200
Suppose X company supplies agricultural products to Y Manufacturers on the basis that it will supply 144000 tons during the year, with shipments of 1200 tons per month with an annual bonus of 15% on each shipment when the quality exceeds 80% of good quality condition, providing there are no late deliveries. The contract rate is 400 dollars per ton. Based on experience, 2 of the months will produce a bonus and all deliveries will be on time. Calculating the amount to record each month (a) the most likely outcome and (b) the expected value.
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