Business, 09.07.2020 01:01 cakecake15
Sunland Construction enters into a contract with a customer to build a warehouse for $890000 on March 30, 2021 with a performance bonus of $60000 if the building is completed by July 31, 2021. The bonus is reduced by $12000 each week that completion is delayed. Sunland commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes:
Completed by Probability
July 31, 2021 60%
August 7, 2021 30%
August 14, 2021 5%
August 21, 2021 5%
The transaction price for this transaction is:.
a. $890000
b. $587400
c. $575400
d. $943400
Answers: 3
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Answers: 1
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