I would like to interpret and operate this question:

Target Cost  = 150000

Target Fee  = 10000 ------ this is fixed fee means up to above Target cost any cost like 140000 will  be reimbursed with fixed profit of 10000.And thus at Target cost , Target price will be only 160000.

Cieling Price  = 165000 ------ means above this price  only seller will bear any more cost like if price is coming 166000, seller will receive only 165000.

In between Cieling price and Target price - seller will get its fixed fee but above the shared cost by buyer of cost over run (cost above Target cost).

Like above example  - If cost performed comes 155000, then cost overrun above target cost is 5000.

Now its buyer share is 60%, means 3000 will be paid by Buyer, thus Total amount reimburshed to seller will be

150000 (Target Cost ) + 3000 (buyer's ratio of 5000) + 10000 (fixed fee) = 163000. ---- Answer should be this.

Net profit to seller is 8000.

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If target cost were be 155000, then  target price (total reimbursh ) would be 165000.

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PTA  = TC +  [(CP - TP)/BR] = 150000 +[ (165000 -  160000)/ 0.60] = 158333.

At this (PTA) as cost performed  158333,

then Total amount to be reimbursed will be

150000 + (buyer's part 60%of 8333 = 5000) + 10000(Fixed Fee) = 165000. (net profit is 6666)

One of meaning of this is ---- any Cost performed over 158333(PTA)  ---- will not be shared and fixed cieling price 165000 will be given.

for example if cost performed would be  159000 or 160000 then only 165000 will be paid to seller.in this case sellers profit would be 4000 or 3000 respectively.

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If Cost performed were be 165000 then seller will get no profit no loss.

If above 165000 then loss.

Regards