$$

Multiple Choice

$2$ points

ABC Company enters into a contract with Edmond Library to help them streamline their purchasing process. The contract specifies that Edmond Library will pay ABC$$100,000$ in the form of a fixed fee plus an additional $$10,000$ if the library achieves $$200,000$ in cost savings. ABC estimates a $55\%$ chance that the library will achieve a $$200,000$ savings. Assume ABC estimates that the transaction price is the expected$-$value transaction price. The transaction price is recorded as $q,$ Ignore any constraints on variable consideration.

$$100,000$

$$105,500$

$$110,000$

$$94,500$