Brunetti Co

question 15

Essay

Brunetti Co. designed and installed customized signs for Di Antonio CPA, Inc. Brunetti's contract specifies that it will receive a flat fee of $15,000 for providing the customized signs, and an additional $1,000 if 30% of Di Antonio's new customers indicate they first learned of Di Antonio because of the signs. Based on historical experience, Brunetti estimates that there is a 90% chance it will achieve the threshold to receive a bonus.
-Assuming Brunetti determines transaction price as the "expected value" of the variable consideration, what would be the appropriate transaction price for this contract?

---

Definitions:

Cell Walls

Rigid or semi-rigid structures surrounding the cell membrane of plants, fungi, and certain bacteria, providing support and protection.

Organic Chemicals

Compounds mainly composed of carbon atoms, along with hydrogen, oxygen, nitrogen, and other elements, found in living organisms.

Alkanes

Saturated hydrocarbons consisting only of carbon (C) and hydrogen (H) atoms, with single C-C bonds.

Alkynes

Alkynes are hydrocarbons containing at least one carbon-carbon triple bond, characterized by the molecular formula C_nH_2n-2, and are known for their reactivity.