Sharpe Knife Company expects sales next year to be $1,650,000 if the economy is strong, $875,000 if the economy is steady, and $650,000 if the economy is weak. Mr. Sharpe believes there is a 10 percent probability the economy will be strong, a 45 percent probability of a steady economy, and a 45 percent probability of a weak economy.
What is the expected level of sales for the next year?
Expected level of sales________________