Question: Shaky Construction Corp. enters into a contract with a customer to build a warehouse for $100,000 with a performance bonus of 3,000 if the warehouse

Shaky Construction Corp. enters into a contract with a customer to build a warehouse
for $100,000 with a performance bonus of 3,000 if the warehouse is completed by
August 1. The bonus is reduced by $1,000 each week that completion is delayed.
Shaky commonly includes these completion bonuses in its contracts, and, based on
prior experience estimates the following completion outcomes:
Completed by Probability
1-Aug 50%
7-Aug 40% THE TRANSACTION PRICE FOR THIS CONTRACT IS
15-Aug 10%
Expected bonus

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