90.2K

Verified Solution

Link Copied!

Need help ASAP

Space W Company sells model rockets to Biggy Hobbies (BH) for $200 each. BH is an ongoing customer of Space W, but Space W wishes they could sell more to BH. Space W offers BH the following discounts based on what their purchases total in the calendar year: . 1 to 999 model rockets: no discount 1,000 to 1,500 model rockets: $6 discount . More than 1.500 model rockets: $10 discount Space W's management has assigned a 60% probability to not having a discount, a 25% probability to a $6 discount, and a 15% probability to a $10 discount. Provide all answers in dollars and cents, e.g. $247.53. Before considering whether the transaction price should be constrained, what is the estimated transaction price (revenue) for each rocket if the most likely amount is used? (Provide the amount recorded as revenue per rocket, not the discount.) $ After consideration of whether the transaction price should be constrained, what is the amount of revenue that will be recorded for each rocket if the most likely amount is used? $ Before considering whether the transaction price should be constrained, what is the estimated transaction price for each rocket if the expected value method is used? $ W After consideration of whether the transaction price should be constrained, what is the amount of revenue that will be recorded for each rocket if the expected value method is used? $ Space W Company sells model rockets to Biggy Hobbies (BH) for $200 each. BH is an ongoing customer of Space W, but Space W wishes they could sell more to BH. Space W offers BH the following discounts based on what their purchases total in the calendar year: . 1 to 999 model rockets: no discount 1,000 to 1,500 model rockets: $6 discount . More than 1.500 model rockets: $10 discount Space W's management has assigned a 60% probability to not having a discount, a 25% probability to a $6 discount, and a 15% probability to a $10 discount. Provide all answers in dollars and cents, e.g. $247.53. Before considering whether the transaction price should be constrained, what is the estimated transaction price (revenue) for each rocket if the most likely amount is used? (Provide the amount recorded as revenue per rocket, not the discount.) $ After consideration of whether the transaction price should be constrained, what is the amount of revenue that will be recorded for each rocket if the most likely amount is used? $ Before considering whether the transaction price should be constrained, what is the estimated transaction price for each rocket if the expected value method is used? $ W After consideration of whether the transaction price should be constrained, what is the amount of revenue that will be recorded for each rocket if the expected value method is used? $

Answer & Explanation Solved by verified expert

See Answer