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Exercise 18-05 (Part Level Submission) Jeff Heun, president of Novak Always, agrees to construct a concrete cart path at Dakota Golf Club. Novak Always enters

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Exercise 18-05 (Part Level Submission) Jeff Heun, president of Novak Always, agrees to construct a concrete cart path at Dakota Golf Club. Novak Always enters into a contract with Dakota to construct the path for $183,000. In addition, as part of the contract, a performance bonus of $37,200 will be paid based on the timing of completion. The performance bonus will be paid fully if completed by the agreed-upon date. The performance bonus decreases by $9,300 per week for every week beyond the agreed upon completion date. Jeff has been involved in a number of contracts that had performance bonuses as part of the agreement in the past. As a result, he is fairly confident that he will receive a good portion of the performance bonus. Jeff estimates, given the constraints of his schedule related to other jobs, that there is 50% probability that he will complete the project on time, a 30% probability that he will be 1 week late, and a 20% probability that he will be 2 weeks late. Determine the transaction price that Novak Always should compute for this agreement. Transaction Price Click if you would like to Show Work for this question: Open Show Work

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