Deb,
I think that is way to high, I do all my own work, I never hire anyone to do anything, so I have no history with contractors to use as a reference, But.....My mother in law has almost the same problem ceiling in the family room. The room 15 x 40. She had a ceiling problem with leak from the roof before I put another roof on. The ceiling area that was damaged was an area 4 x 12. The drywall was cut out, ceiling had new drywall put in and a new led light, that was not there before and it was installed above the entrance door. Drywall then spackled, damaged insulation replaced. prime coat put on ceiling, two coats of flat, and all the walls given two coats of paint, pictures put back up, furniture put back in position. This is a contractor, not a friend. My mother in law paid for all the parts and pieces, came to $280.00 and she paid $200.00 in labor. I dont live close to the Mother in Law, and she just gave me the prices over the phone and I though I would share. Not sure how long it took to finish. For your reference....