Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Need help. Thanks Question 12 (1 point) Fixed Price Incentive Fee Calculation. In this fixed price incentive fee contract, the target cost is estimated at
Need help. Thanks
Question 12 (1 point) Fixed Price Incentive Fee Calculation. In this fixed price incentive fee contract, the target cost is estimated at $9,000,000 and the target fee is $850,000. The project is over, and the buyer has that the costs were, in fact, $8,000,000. Because the seller's cost came in lower than the estimated costs, the seller shares in the savings: 70% to the buyer and 30% to the seller. The ceiling price is $12,500,000. Calculate the final fee and final price. O Fee $850,000 Price: $8,850,000 O Fee $850,000 Price: $9,850,000 O Fee $1,150,000 Price: $9,150,000 O Fee $1,550,000 Price: $9,550,000Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started