You have a CPIF contract with a target cost of $3,125,000 and a target fee

of $156,250. The associated clause states "(e) Fee payable (1) The fee

payable under this contract shall be the target fee increased by 15 cents

for every dollar that the total allowable cost is less than the target cost

or decreased by 20 cents for every dollar that the total allowable cost

exceeds the target cost. In no event shall the fee be greater than 7 percent

or less than 2 percent of the target cost." Given a final cost of $2,750,000

determine the final fee and the final contract funding.

A.56,250/2,806,250

B.218,750/2,968,750

C.100,000/2,850,000

D.212,500/2,962,500

Your CPIF contract has the following characteristics: Target Cost -

$2,300,000; Target Fee - $150,000; Max Fee - $207,000; Min Fee - $69,000;

80/20 Under; 90/10 Over. What is the range of incentive effectiveness (RIE) from RIELower to RIEHigher ?

A.2,150,000 to 2,450,000

B.2,015,000 to 3,110,000

C.2,243,000 to 2,381,000

D.1,730,000 to 2,705,000

Given your objective of $1,275,000 (subtotal cost); $76,500 (G&A); $19,125 (FCCOM), and $164,350 (profit); what would be the appropriate target cost under an incentive contract?

A.1,275,000

B.1,351,500

C.1,370,625

D.1,534,975