LiveHappy is a company that sells food and snacks to health$-$conscious consumers. LiveHappy$$s target market is

comprised of individuals who exercise regularly. As a marketing strategy, they produce a number of pre$-$recorded

training sessions to be used with exercise bikes. These sessions contain commercials for LiveHappy$$s products. They

want these sessions to be available on the SlipStream platform to help them gain name$-$recognition among their

target demographic. They reach an agreement with SlipStream, and the terms of the contract are:

$$ On January $1,2024,$ LiveHappy pays SlipStream Industries an up$-$front fixed fee of $$300,000$ for six months

of featured access for $50$ individual training session videos.

$$ LiveHappy also will pay SlipStream a bonus of $$150,000$ if the SlipStream users access LiveHappy$$s training

sessions for at least $15,000$ hours during the six$-$month period

$$ SlipStream does not have contracts similar to this with any other entities.

At the inception of this contract SlipStream Industries estimated that it has a $35\%$ chance to achieve the usage

target and receive the $$150,000$ bonus.

$2$

In April, LiveHappy wants Slipstream to host more videos on the platform, and both firms agree to modify the

original contract. LiveHappy pays an additional $$50,000$ on April $1$ to add $100$ additional videos to SlipStream$$s

platform. At that time, Slipstream revised their estimate and now believes there is a $75\%$ chance they will receive

the $$150$K bonus.

On June $30,$ SlipSteam determined that its users had accessed $15,000$ hours of LiveHappy$$s training sessions. They

received the bonus on July $1.$