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Help please! Swifty Corp. enters into a contract with a customer to build an apartment building for $ 9 9 5 , 6 0 0
Help please!
Swifty Corp. enters into a contract with a customer to build an apartment building for $ The customer hopes to rent apartments at the beginning of the school year and provides a performance bonus of $ to be paid if the building is ready for rental beginning August The bonus is reduced by $ each week that completion is delayed. Swifty commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes:
Completed by Probability
August
August
August
After August
a Determine the transaction price for the contract, assuming Swifty is only able to estimate whether the building can be completed by August or not Swifty estimates that there is a chance that the building will be completed by August If answer is please enter Do not leave any fields blank.
Transaction Price $
b Determine the transaction price for the contract, assuming Swifty has limited information with which to develop a reliable estimate of completion by the August deadline.
Transaction Price $
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