Calculate how much the federal government will pay for a Cost Plus Incentive Fee (CPIF) contract based on the below factors

Target Cost = $1,000 Target Fee = $100 Sharing Ratio for cost overruns = 90% Client / 10% Contractor Sharing Ratio for cost underruns = 60% Client / 40% Contractorand for actual cost of $1,500 and $700. How much does the contractor ear for each case?

If the Sharing Ratio is 0%/100%, then what would the contract be considered?

If the Sharing Ratio is 100%/0%, then what would the contract be considered?