PTA Question -- Lehmann Question No: 16
Question : You are running a project for a customer based on a cost-reimbursable contract with the following terms:
Target costs: $ 1,000,000
Fixed fee: $ 100,000
Benefit/cost sharing: 80% / 20%
Price ceiling: $ 1,200,000
Which is the PTA (= point of total assumption, break point) of the project?
Need Clarification that
1. For Final fee and Final price Calculation : there is no Target Fee and Actual Cost.
2. for PTA there is no Target Price also given in the question.
how shall I calculate PTA
need your explaination .