A fixed-price-incentive-fee contract question
Submitted by OzgurAdibelli on Wed, 06/20/2012 - 12:30
Forums:
Could someone explain the solution of question?
A fixed-price-incentive-fee contract has the following characteristics: target cost: $150,000, target fee: $10,000, price ceiling: $165,000, sharing ratio: 60/40. How much will the contractor be reimbursed if the cost of performing the work is $155,000?
A. $165,000
B. $155,000
C. $167,000
D. $169,000
