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Jeff Heun, president of Nash Always, agrees to construct a concrete cart path at Dakota Golf Club. Nash Always enters into a

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Answer #1
Calculation of transaction price
transaction price = contract price+bonus
Calculation of performance bonus
probability(a) amount(b) eatimated bonus (a)*(b)
completed on time 55% 38800 21340
1 week later 25% 29100 7275
2 week later 20% 19400 3880
total estimated performance bonus 32495
Transaction price = 183000+32495 = 215495
b)
estimated performance bonus
probability(a) amount(b) eatimated bonus (a)*(b)
completed on tine 86% 38800 33368
1 week later 14% 29100 4074
total estimated performance bonus 37442
Transaction price = 183000+37442 = 220442
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