ABC Company enters a contract with Edmond Ubrary to help them streamilne their purchasing process. The contract specifies that Edmond Ubrary will pay ABC $ in the form of a fixed fee plus an additional $ if the library achleves $ in cost savings. ABC estimates a chance that the library will achleve a $ savings. Assuming ABC estimates that the transaction price is the expected value transaction price. The transaction price is recorded as
a $
$
c $
d $
Questions and
Zhang Corporation enters a contract with Warner Video to add their programs to Zhang's network, Warner will pay Zhang an upfront flixed fee of $ for months of access and will also pay a $ bonus if Zhang's users access Warner Video for at least hours during the month period. Thang estimates that it has a chance of earning the $ bonus.
Refer to Zhang Corporation. Using the expectedvalue approach the transaction price would be
a $
b $
c
$
