Calulation Based Question
Submitted by munishmsh on Sat, 08/06/2011 - 07:01
Forums:
Hi
Would you please let me know how to do the calculation for the below question.
A Cost-plus incentive fee contract has the following contract elements Target cost = $10,000,000 Target Profit = $800,000 Optimistic Cost = $8,000,000 Optimistic Profit = $1,000,000 Pessimistic Cost = 12,000,000 Pessimistic Profit= $1,600,000 If the seller completes the project at an actual cost of $10, 200,000, what is the overall price for the buyer if the over-run share ratio is 60/40?
