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Barbara Bradely is the project manager for a top secret government project to build the next generation bombing target computer. There is a great deal
Barbara Bradely is the project manager for a top secret government project to build the next generation bombing target computer. There is a great deal of uncertainty in the project due to the conflicting requirements various military services are demanding to be part of the final product. Barbara has been assured by the CEO of her firm that even though this is a very difficult project, she is certain that the engineering staff are up to the task, and as long as a reasonable point of total assumption is agreed to, that the project has potential to provide great rewards. Working with the engineering and operations groups, Barbara has determined the following: Target Cost=$325,000; Target Profit=$85,000; Target Price=$410,000; Buyer/Share Ratio=70/30%; Ceiling Price=$594,500; Maximum Overrun=145%. At what cost will the seller be responsible for all future cost overruns
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