Assuming Thomas uses the expected value as its estimate of

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Assuming Thomas uses the expected value as its estimate of
  • Assuming Thomas uses the expected value as its estimate of

  • Answers • 3 pages • 2019
  • (Variable consideration; estimation and constraint) 5-9 Thomas consultants provided Bran constructions with assistance in implementing various cos-saving initiatives. Thomas’ contract specifies that it will receive a flat fee of $50,000 and an additional $20,000 if Bran reaches a pre-specified target amount of cost saving. Thomas estimates that there is a 20% chance that Bran will achieve the cost-savings target. Required: 1. Assuming Thomas uses the expected value as its estimate of vari...
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