Leo Consulting enters into a contract with High gate University to restructure High gate's processes for purchasing

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Leo Consulting enters into a contract with High gate University to restructure High gate's processes for purchasing goods from suppliers. The contract states that Leo will earn a fixed fee of $25,000 and earn an additional $10,000 if High gate achieves $100,000 of cost savings. Leo estimates a 50% chance that High gate will achieve $100.000 of cost savings. Assuming that Leo determines the transaction price as the expected value of expected consideration, what transaction price will Leo estimate for this contract?
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Related Book For  answer-question

Intermediate Accounting

ISBN: 9781259722660

9th Edition

Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas

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