A Cost-plus-incentive-fee (CPIF) contract has an estimated cost of 240,000, a fee of 50,000, and a...

Transcribed Image Text:

A Cost-plus-incentive-fee (CPIF) contract has an estimated cost of 240,000, a fee of 50,000, and a share ratio of 75/25. The actual cost of the project was 220,000. Calculate the final fee and the total money paid to the contractor. (Hint: For the share ratio, In the case of any savings on cost, the company gets 75% of the savings and the contractor gets 25%. This money will be added to the contractor's fee. Similarly, if there are no savings, the company will be penalized 75% and the contractor 25%. This money will be subtracted from the contractor's fee) Final fee= total money paid to contractor= A Cost-plus-incentive-fee (CPIF) contract has an estimated cost of 240,000, a fee of 50,000, and a share ratio of 75/25. The actual cost of the project was 220,000. Calculate the final fee and the total money paid to the contractor. (Hint: For the share ratio, In the case of any savings on cost, the company gets 75% of the savings and the contractor gets 25%. This money will be added to the contractor's fee. Similarly, if there are no savings, the company will be penalized 75% and the contractor 25%. This money will be subtracted from the contractor's fee) Final fee= total money paid to contractor=