Jeff Heun, president of Buffalo Always, agrees to construct a concrete cart path at Dakota Golf Club. Buffalo Always enters into a contract with Dakota to construct the path for $235,000. In addition, as part of the contract, a performance bonus of $32,800 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 $8,200 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 55% probability that he will complete the project on time, a 30% probability that he will be 1 week late, and a 15% probability that he will be 2 weeks late.

(a) Determine the transaction price that Buffalo Always should compute for this agreement.

Transaction Price $enter the transaction price that Buffalo Always should compute for this agreemen