Philip Enterprises, distributor of video discs, is developing its budgeted cost of goods sold
for next year. Philip has developed the following range of sales estimates and associated
probabilities for the year:

Sales Estimate ..Probability

$ 60,000 ............25%

85,000 ...............40

100,000 .............35

Philip’s cost of goods sold averages 80% of sales. What is the expected value of Philip’s
budgeted cost of goods sold?