Question
PLEASE DO FOLLOWING 3 PROBLEMS; ANSWER IS PROVIDED BUT I WANT TO SEE THE STEPS TO GET THERE- THANKS [they look long but they're actually
PLEASE DO FOLLOWING 3 PROBLEMS; ANSWER IS PROVIDED BUT I WANT TO SEE THE STEPS TO GET THERE- THANKS
[they look long but they're actually very simple I just need to learn the process]
1)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
Fee $1,150,000 Price: $9,150,000
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2)Fixed Price Incentive Fee Calculation. In this fixed price incentive fee contract, the target cost is estimated at $150,000 and the target fee is $30,000. The project is over, and the buyer has that the costs were, in fact, $210,000. Because the seller's cost came in higher than the estimated costs, the seller shares in the added cost: 60% to the buyer and 40% to the seller. The ceiling price is $200,000. Calculate the point of total assumption.
$183,333
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3)Cost Plus Incentive Fee Calculation. In this cost plus incentive fee contract, the cost is estimated at $210,000 and the fee at $25,000. The project is complete, and the buyer has agreed that the costs were, in fact, $200,000. Because the seller's costs came in lower than the estimated costs, the seller shares in the savings: 80% to the buyer and 20% to the seller. Calculate the final fee and final price. The answer is :
Fee $27,000 Price: $227,000
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