WestCoast Co

question 22

Essay

WestCoast Co. started a contract in June 2020 to build a bridge at a fixed price of $14 million. The bridge was to be completed by October 2022. Total cumulative costs incurred by the end of December 2020 and 2021 were $2 million and $6 million, respectively. WestCoast Co. is unable to estimate the total costs of the project prior to completion. Final costs at the end of the project totaled $11 million.
Required:
Determine the amount of revenue, cost of sales, and gross profit WestCoast Co. would report in 2020, 2021, and 2022.
$$\begin{array} { | r | r | r | r | } \hline & 2020 & 2021 & 2022 \\\hline \text { Revenue } & & & \\\hline \text { Cost of sales } & & & \\\hline \text { Gross profit } & & & \\\hline\end{array}$$

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Definitions:

Nash Equilibrium

A concept in game theory where each player's strategy is optimal, considering the strategies of other players, and no player has anything to gain by changing their own strategy unilaterally.

Mixed Strategy

A situation in game theory where a player chooses among several possible moves according to a probability distribution.

Troops

Military units or forces, especially those organized for land warfare.

Pure Strategies

In game theory, actions or sequences of moves that a player commits to in a strategic setting without randomness.