A company enters into a contract in which variable consideration is offered. The company will either meet the deadline to receive the variable consideration or receive no variable consideration. Based on experience, the company expects that the most likely outcome is that it will meet the deadline to receive the variable consideration. How should the company determine the transaction price?

The owner of firewood to go is considering buying a hydraulic wood splitter which sells for $50,000. he figures it will cost an additional $100 per cord to purchase and split wood with this machine, while he can sell each cord of split wood for $125. if, for this machine, design capacity is 50 cords per day, effective capacity is 40 cords per day, and actual output is expected to be 32 cords per day, what would be its efficiency?