A company is considering three alternative machines to produce a new product. The cost
structures (unit variable costs plus avoidable fixed costs) for the three machines are shown as follows. The
selling price is unaffected by the machine used.
Single purpose machine $.60x + $20,000
Semiautomatic machine $.40x + $50,000
Automatic machine $.20x + $120,000
The demand for units of the new product is described by the following probability distribution.
Ignoring the time value of money, the expected cost of using the semiautomatic machine is