Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. variable consideration robotics inc. contracts wi

Variable Consideration Robotics Inc. contracts with a customer to build a custom robot to...

50.1K

Verified Solution

Question

Accounting

Variable Consideration
Robotics Inc. contracts with a customer to build a custom robot to be used in the customer's manufacturing operations for $2,000,000. If the robot is delivered and operational by
January 1, the customer will pay Robotics a $200,000 performance bonus. For every week that the robot is not operational, the bonus is reduced by $100,000. Robotics estimates
the following possible outcomes and probabilities:
Determine the transaction price that Robotics should use for this contract when it is signed.
Transaction price ,$
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students