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1. A Fixed Price Incentive Fee (FPI) contract has a Target Cost of $130,000, a Target Profit of $15,000, a Target Price of $145,000, a

1. A Fixed Price Incentive Fee (FPI) contract has a Target Cost of $130,000, a Target Profit of $15,000,

a Target Price of $145,000, a Ceiling Price of $160,000 and a share ratio of 80/20.

e.) How much profit does the seller make if the actual cost is $120,000?

f.) What is the ROS?

g.) How much profit does the seller make if the actual cost is $ 165,000?

h.) How much profit does the seller make if the actual cost is $ 100,000?

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