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Tom Anderson, president of Sandhill Always, agrees to construct a concrete cart path at Tamarisk Golf Club. Sandhill Always enters into a contract with Tamarisk

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Tom Anderson, president of Sandhill Always, agrees to construct a concrete cart path at Tamarisk Golf Club. Sandhill Always enters into a contract with Tamarisk to construct the path for $191,000. In addition, as part of the contract, a performance bonus of $48,000 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 $12,000 per week for every week beyond the agreed-upon completion date. Tom 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 recelve a good portion of the performance bonus. Tom estimates, given the constraints of his schedule related to other jobs, that there 155% probabitity that he wilf complete the prolect 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 Sandhill Always should compute for this agreement

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