Winn co. manufactures equipment that is sold or leased. on december 31, 2005, winn leased equipment to bart for a 5-year period ending december 31, 2010, at which date ownership of the leased asset transferred to bart. equal payments under the lease were $22,000 (including $2,000 executory costs) and were due on december 31 of each year. the first payment was made on december 31, 2005. collectability of the remaining lease payments was reasonably assured, and winn had no material cost uncertainties. the normal sales price of the equipment was $77,000, and cost was $60,000. for the year ending december 31, 2005, what amount of income should winn realize from the lease transaction?

This exercise illustrates that poor quality can affect schedules and costs. a manufacturing process has 130 customer orders to fill. each order requires one component part that is purchased from a supplier. however, typically, 3% of the components are identified as defective, and the components can be assumed to be independent. (a) if the manufacturer stocks 130 components, what is the probability that the 130 orders can be filled without reordering components? (b) if the manufacturer stocks 132 components, what is the probability that the 130 orders can be filled without reordering components? (c) if the manufacturer stocks 135 components, what is the probability that the 130 orders can be filled without reordering components?