Purple Uniforms is a wholesaler who sells school uniforms to retailers. On Augus

Question

Purple Uniforms is a wholesaler who sells school uniforms to retailers. On August 1, Purple contracts with Excel School Uniforms to sell 2,000 uniforms to Excel to be delivered September 1. The contract price is set at $340 each. The contract provides for a 10% volume discount if sales exceed 3,000 uniforms. The probability of sales of 3,000 uniforms is expected to be 74%. Using the most-likely-amount approach, the consideration is estimated to be ________.

14. Purple Uniforms is a wholesaler who sellschool uniforms to contracts with Excel School Uniforms to sell 2,000 uniforms to Excel to be delivered September 1. exceed 3,000 uniforms. The probability of sales of 3,000 uniforms is expected to be 74%. Using the most-likely-amount approach, the consideration is estimated to be a. $918,000 b. $754,800 c. $612,000 d. $503,200

Explanation / Answer

Using the most-likely-amount approach, the consideration=2000*340*0.9=$612000 Option C is correct

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