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Tama Brass Corp. (TBC) is a wholesaler that sells musical instruments to retailers On February 1 of the current year, TBC contracts with Pinder Extravaganza,

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Tama Brass Corp. (TBC) is a wholesaler that sells musical instruments to retailers On February 1 of the current year, TBC contracts with Pinder Extravaganza, Inc (PEI) to sell 1.600 trumpets to Pel with delvery scheduled for the month of February The contract price is $800 per trumpet. However, the contract includes the possibty of a volune 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 o for any zero values.) Consideration Amount for the Discount Percentage Expected Consideration 1,600 Trumpets Probability % Total Annual Sales 1,280,000 1580,000 2.380,000 4,880,000 % expected-value approach, what is the estimate of the consideration amount in this con Probability estimates - Discount percentage - X aual cted Jeratio 0,000 0,000 0.000 Discount Percentage It Total Sales Equal or Exceed 51,580,000 $2,380,000 $4.880,000 These discounts are retroactive once a volume trigger is met TBC refunds to PEI amounts on previous purchases. TBC believes that it is 16% likely that it will not contract with Pel again this year. TBC believes the following probability estimates are accurate Total Sales Probability 3% 5% 0.000 6% 16% $ 45% 1.280,000 1,580,000 2,380,000 4,880,000 $ 2296 Print Done $ 17% Print Done

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