Refer to the CPIF and FPIF example problems in Examples 12.2 and 12.4. a. In both the

Question:

Refer to the CPIF and FPIF example problems in Examples 12.2 and 12.4.

a. In both the CPIF and FPIF cases, what is the price if Cac = $90,000? What is the contractor’s profit?

b. In both cases, what is the price if Cac = $160,000. What is the contractor’s profit?

c. Sometimes two CSRs are used, a different one each for underruns and overruns.

What are the answers to

a. and

b. if the CSR is 70/30 for underruns and 80/20 for overruns?

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