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PLEASE DO FOLLOWING PROBLEM; ANSWER IS PROVIDED BUT I WANT TO SEE THE STEPS TO GET THERE- THANKS Cost Plus Incentive Fee Calculation. In this
PLEASE DO FOLLOWING PROBLEM; ANSWER IS PROVIDED BUT I WANT TO SEE THE STEPS TO GET THERE- THANKS
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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