6 Sharpe Knife Company expects sales next year to be $1,520,000 if the economy is strong, $810,000 if the economy is steady, and $520,000 if the…

E1:6
Sharpe Knife Company expects sales next year to be $1,520,000 if the economy is strong, $810,000 if the economy is steady, and $520,000 if the economy is weak. Mr. Sharpe believes there is a 15 percent probability the economy will be strong, a 50 percent probability of a steady economy, and a 35 percent probability of a weak economy.
What is the expected level of sales for the next year?
  Expected level of sales$   

 

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