ACD Construction enters into a contract with a customer to build a warehouse for $950,000 on March 30, 2021 with a performance bonus of $50,000 if the building is completed by July 31, 2021 The bonus is reduced by $10,000 each week that completion is delayed ACD commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes Completed By Probability July 31, 2021 55 August 7, 2021 25 August 14, 2021 5 August 21, 2021 5 The transaction price for this transaction is A $995,000 B $990,000 C $652,500 D $685,000

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ACD Construction enters into a contract with a customer to build a warehouse for $950,000 on March 30, 2021 with a performance bonus of $50,000 if the building is completed by July 31, 2021  The bonus is reduced by $10,000 each week that completion is delayed  ACD commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes  Completed By Probability July 31, 2021 55  August 7, 2021 25  August 14, 2021 5  August 21, 2021 5  The transaction price for this transaction is A  $995,000 B  $990,000 C  $652,500 D  $685,000

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ACD Construction enters into a contract with a customer to build a warehouse for $950,000 on March

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Managerial Decision Modeling With Spreadsheets

Completed By	Probability
July 31, 2021	55%
August 7, 2021	25%
August 14, 2021	5%
August 21, 2021	5%

ACD Construction enters into a contract with a customer to build a warehouse for $950,000 on March

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Managerial Decision Modeling With Spreadsheets

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