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Business, 04.07.2020 23:01 gatorgirl10152

Marle Construction enters into a contract with a customer to build a warehouse for $850,000 on March 30, 2014 with a performance bonus of $50,000 if the building is completed by July 31, 2014. The bonus is reduced by $10,000 each week that completion is delayed. Marle commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes:Completed by Probability July 31, 2018 65% August 7, 2018 5% August 14, 2018 5% August 21, 2018 5%The transaction price for this transaction, based on the expected value approach, is: a. $950,000 b. $995,000 c. $685,000 d. $652,500

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