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Commercial Drone Inc. engaged a vendor on a Cost Plus Incentive Fee contract where the vendor was promised to be reimbursed for the cost estimated
Commercial Drone Inc. engaged a vendor on a Cost Plus Incentive Fee contract where the vendor was promised to be reimbursed for the cost estimated at $980,000 and the target fee is 20% of the estimated cost. Any cost savings (or overspend) will be split 60/40. The ceiling price is set at $1,290,000. What is the Final Fee that Commercial Drone Inc. is obligated to the seller if the final cost reported was $1,010,000? $1,106,000 $208,000 $184,000 $1,194,000
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