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Leo Consulting enters into a contract with Highgate University to restructure Highgates processes for purchasing...

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Accounting

Leo Consulting enters into a contract with Highgate University to restructure Highgates processes for purchasing goods from suppliers. The contract states that Leo will earn a fixed fee of $44,000 and earn an additional $9,000 if Highgate achieves $90,000 of cost savings. Leo estimates a 70% chance that Highgate will achieve $90,000 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

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