On March $1,2027,$ Elkhart enters into a new contract to build a specialized warehouse for

$$7$ million. The promise to transfer the warehouse is determined to be a performance

obligation. The contract states that if the warehouse is usable by November $30,2027,$

Elkhart will receive a bonus of $$700,000.$ For every week after November $30$ that the

warehouse is not usable, the bonus will decrease by $$150,000.$ Elkhart provides the

following completion schedule:

Probability of Completion

November $30,2027$

December $7,2027$

December $14,2027$

December $21,2027$

December $28,2027$

$50\%$

$20\%$

$15\%$

$10\%$

$5\%$

Assume that Elkhart uses the probability$-$weighted amount to determines the

transaction price given that this contract contained a variable consideration component.

Determine the transaction price on March $1,2027$ assuming the company believes

the variable consideration is reasonably assured and is not constrained.