Hi Guys,

Can someone explain when to add target profit and when we do not. For eg. in below question. We did not  add target profit.

The contract is a CPIF contract. Target costs= $ 500,000 ; Traget profit=$ 80,000. However, project was completed at $450,000. The incentive split is 80/20. How much is the total contract cost?

1) 470,000