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