Question
In a fixed price incentive fee contract, the target cost is $100,000 and the target profit is 10%. A price ceiling has been set at
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In a fixed price incentive fee contract, the target cost is $100,000 and the target profit is 10%. A price ceiling has been set at $110,000. The share ratio percentage for the vendor is 30%. If the actual cost is $80,000, what is the overhead fee for this procurement?
$10,000
$16,000
$6,000
$96,000
In a fixed price incentive fee contract, the target cost is $100,000 and the target profit is 10%. A price ceiling has been set at $110,000. The share ratio percentage for the vendor is 30%. If the actual cost is $80,000, what is the overhead fee for this procurement?
| $10,000 | ||
| $16,000 | ||
| $6,000 | ||
| $96,000 |
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Advanced Accounting
Authors: Susan Hamlen
5th Edition
1618534246, 9781618534248
