Problem 6-2 Expected value (LO6-6] Sharpe Knife Company expects sales next year to be $1,670,000 if the economy is strong, $885,000 if the economy is steady, and $670,000 if the economy is weak. Ms. Sharpe believes there is a 20 percent probability the economy will be strong, a 55 percent probability of a steady economy, and a 25 percent probability of a weak economy. What is the expected level of sales for the next year? Expected level of sales $ 1,039,000