Sharpe Knife Company expects sales next year to be $1,540,000 if the economy is strong, $820,000 if the economy is steady, and $540,000 if the economy is weak. Ms. Sharpe believes there is a 25 percent probability the economy will be strong, a 60 percent probability of a steady economy, and a 15 percent probability of a weak economy.

What is the expected level of sales for the next year?