Seller Profit

Submitted by Pretanika on Sat, 08/25/2012 - 18:25

  In which of the following contract types is the seller's profit limited?  

1. Cost-plus-percentage-cost contract  
2. Cost-plus-fixed-fee contract  
3. Fixed-price-plus-incentive  
4. b and c
 
Is it not just Cost-plus-fixed-fee contract  ? or Both B and C?
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admin

Mon, 08/27/2012 - 08:26

Option 2 would be the right answer since the seller's profit is limted to fixed fee, In % cost there is still scope to earn more profit if contract value increases.


FP + incentive seller can try and earn incentive, so the profit is not limited.