Business, 21.05.2020 21:07 neariah24

Romeo Construction enters into a contract with a customer to build a warehouse for $800,000 on March 30, 2014, with an additional performance bonus of $50,000 if the building is completed by July 31, 2014. The bonus is reduced by $10,000 each week that completion is delayed.
Romeo commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes:

Completed by Probability
July 31, 2014 65%
August 7, 2014 25%
August 14, 2014 5%
August 21, 2014 5%

The transaction price for this transaction is .

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