date is May 31, 2022. Samad Builders is guaranteed to receive a price of $1,500,000 for their services in addition to a bonus depending on when the project is completed. Jay's Finer Foods created incentives for Samad Builders to finish the store as soon as he can without jeopardizing the structural integrity of the store. Jay's Finer Foods offered to pay an additional 10% of the price if the store was finished 2 weeks early and 5% of the price if the store was finished one week early. (no bonus for on time completion) . In addition, there would be a penalty of 15% if the store was not completed on time. The probability of finishing 2 weeks early is 70%, one week early is 15% on time is 10%, and late is 5%. Samad Builders is very experienced in this type of construction and unlikely to experience a revenue reversal. What is the transaction price? (do not use dollar signs, com
On November 1, 2021 Samad Builders entered into a contract to build a new store for Jay's Finer Foods. The projected completion date is May 31, 2022. Samad Builders is guaranteed to receive a price of $1,500,000 for their services in addition to a bonus depending on when the project is completed. Jay's Finer Foods created incentives for Samad Builders to finish the store as soon as he can without jeopardizing the structural integrity of the store. Jay's Finer Foods offered to pay an additional 10% of the price if the store was finished 2 weeks early and 5% of the price if the store was finished one week early. (no bonus for on time completion) . In addition, there would be a penalty of 15% if the store was not completed on time. The probability of finishing 2 weeks early is 70%, one week early is 15% on time is 10%, and late is 5%. Samad Builders is very experienced in this type of construction and unlikely to experience a revenue reversal.
What is the transaction price? (do not use dollar signs, commas, or decimals in your answer)
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