Leo Consulting enters into a contract with High gate University Leo Consulting enters into a… 1 answer below »

Leo Consulting enters into a contract with High gate University
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?

Leo Consulting enters into a contract with High gate University

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