Janus Construction signs a contract to construct a small warehouse. The amount Janus will be paid depends on when the warehouse will be finished and is totally dependent on management's efficiency in production planning. The contract price is $100,000. Each one-week delay results in a penalty equal to $2,000. Janus's management, well-versed in scheduling this kind of job, estimates the following distribution of outcomes and associated probabilities:

On-time completion: 30% chance One-week delay: 50% chance Two-week delay: 10% chance Three-week delay: 10% chance

Under the most likely amount approach, the transaction price is:

a. $98,000.

b. $100,000.

c. $94,000.

d. $96,000.