Suppose that a sales force has found 20 qualified buyers and has begun the sales process. The sales manager estimates that 10% eventually proceeds to make a purchase. Assume that a professional...

Suppose that a sales force has found 20 qualified buyers and has begun the sales
process. The sales manager estimates that 10% eventually proceeds to make a purchase.
Assume that a professional company offers three services, priced at $2,000, $7,000 and
$20,000, respectively. Based on past results or the sales manager’s estimates, you project
that 60% of first-time buyers will choose the cheapest option, 30% will choose the middle
option and 10% will choose the most expensive option.

a. Calculate the size of a likely sale for any prospect that makes a purchase.