A Buyer for Discount Fashions, an Outlet for Women's Apparel

A buyer for Discount Fashions, an outlet for women's apparel, is considering buying a batch of clothing for $61,000. She estimates that the company will be able to sell it for $80,000, $75,000, or $70,000 with probabilities of 0.20, 0.40, and 0.40, respectively. Based on these estimates, what will be the company's expected gross profit?

A) $13,000
B) $23,400
C) $7,800
D) $15,600
E) $10,400