Question
Braden Construction agreed to build a warehouse for $750,000 on April 1st with a performance bonus of $45,000 if the building is completed by Sept.
Braden Construction agreed to build a warehouse for $750,000 on April 1st with a performance bonus of $45,000 if the building is completed by Sept. 1st. The bonus is reduced by $15,000 each week completion is delayed. Based on past experience, Braden estimates the following outcomes:
Completed by: Probability
September 1st 70%
September 8th 20%
September 15th 10%
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Cost And Management Accounting An Introduction
Authors: Colin Drury
5th Edition
1861529058, 978-1861529053
