Variable Consideration

Robotics Inc. contracts with a customer to build a custom robot to be used in the customer's manufacturing operations for $$2,000,000.$ If the robot is delivered and operational by

January $1,$ the customer will pay Robotics a $$200,000$ performance bonus. For every week that the robot is not operational, the bonus is reduced by $$100,000.$ Robotics estimates

the following possible outcomes and probabilities:

Determine the transaction price that Robotics should use for this contract when it is signed.

Transaction price $,$$