Question
The buyer and seller are engaging in a FPIF (Fixed-Price Incentive Fee) contract and agree on the following parameters: Target Cost: $380,000 Actual Cost: $395,000
The buyer and seller are engaging in a FPIF (Fixed-Price Incentive Fee) contract and agree on the following parameters:
Target Cost: $380,000
Actual Cost: $395,000
Sharing Ratio: Buyer 70%/30% Seller
Target Profit (AKA Target Fee): $20,000
Price Ceiling (AKA Point of Total Assumption): $410, 000
Calculate the values below
Target cost
Fill in
Actual cost
Variance (over/under)
Seller sharing ratio
Overrun/Underrun
Target profit
Profit
Actual cost
Price
Price ceiling
Final price
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Financial Institutions Management
Authors: Anthony Saunders
3rd Edition
007303259X, 978-0073032597
