Jones Corporation enters into a contract with Warner Video to add their programs to Jones' network. Warner will pay Jones an upfront fixed fee of $250,000 for 12 months of access, and will also pay a $100,000 bonus if Jones' users access Warner Video for at least 10,000 hours during the 12 month period. Jones estimates that it has a 60% chance of earning the $100,000 bonus

Refer to Jones Corporation. Using the expected-value approach the transaction price would be ________.

A) $200,000
B) $250,000
C) $310,000
D) $350,000

Answer: C