Bonferroni Company sells 1,000 Halloween costumes to a wholesaler for $20 per costume. The contract provides the wholesaler the right to return all unsold costumes after Halloween. Based on its experience in this industry, Bonferroni can reliably provide the following range of returns for this contract.

1. What is the estimated transaction price if Bonferroni uses the expected value method? What is the estimated transaction price if Bonferroni uses the most likely amount method?

Number of Costumes Returned - Probability

50 - 40%

75 - 45%

100 - 15%