Question
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
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.
a.) How much profit does the seller make if actual cost is $150,000?
b.) What is the ROS?
c.) How much profit does the seller make if the actual cost is $140,000?
d.) What is the ROS?
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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