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Please help in this question

  • 1.  Please help in this question

    Posted 09-13-2023 04:06 AM
    The LAL Company signs a contract with GHY Company that will run from March 1, 20X2, through June 30, 20X2. GHY agrees to purchase a minimum of 100 units from LAL during that time. The selling price for the first 100 units is $200 per unit. The selling price for between 101 and 200 units is $180 per unit, and any additional units above 200 will be $160 per unit. LAL estimates that there is a 30% chance GHY will purchase 100 units under the contract, a 50% chance it will purchase 200 units, and a 20% chance it will purchase 250 units. On March 15, GHY purchases 75 units. What is the transaction price per unit LAL should use for the purchase?

    Could someone please explain how to do it. 
    Answer is 191.11


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