jake bend president of songbird Always, agrees to construct a concrete cart path at Dakota Golf ClubKingbird Always enters into a contract with Dakota to construct the path for $202,000, In addition, as part of the contract, a performance bonus of $46,400 will be paid based on the timing of completionThe performance bonus will be paid fully completed by the agreed-upon dateThe performance bonus decreases by 11,600 per week for every week beyond the agreed-upon completion date jake has been involved in a number of contracts that had performance bonuses as part of the agreement in the pastAs a resulthe is fairly confident that he will receive a good portion of the performance bonus jake estimates given the constraints of his schedule related to other jobsthat there is 50% probability that he will complete the project on timea 30% probability that he will be 1 week late, and a 20% probability that he will be 2 weeks late

1 determine the transaction prive if songbird. always sould compture agreement

2

Assume that jake has reviewed his work schedule and decided that it makes sense to complete this project on time Assuming that he now believes that the probability for completing the project on time is 88% and otherwise it will be finished week latedetermine the transaction price