Question: You have signed a Cost Plus Incentive Fee contract with the client. The details of the contract are as follows: Target cost: 300,000 USD Target

You have signed a Cost Plus Incentive Fee contract with the client. The details of the contract are as follows: Target cost: 300,000 USD Target fee: 30,000 USD Maximum fee: 40,000 USD Minimum fee: 15,000 USD Share ratio: 60/40 You have completed the work and the actual cost is 270,000 USD. The amount you will be paid from the client will be:

(a) 312,000 USD

(b) 310,000 USD

(c) 330,000 USD

(d) 315,000 USD

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related PMP® Exam Practice Test And Study Guide Questions!

4 For your office work you need a high end photocopy machine which is available to rent for 150 USD per day and the operating cost is 25 USD. The price of this machine is 125,000 USD. You will need...

1. Your organization has signed a cost plus incentive fee contract with a seller. The cost ofthe contract is 100,000 USD and the target profit is 10% of the target cost. The sellers share ratio is...

What is the purpose of the Proposal Evaluation process? Group of answer choices To negotiate the terms and conditions of the contract To ensure that the seller meets the project objectives To select...

Calculating Project Costs Determine the final price paid by the buyer in these scenarios (show all work) a. Cost plus incentive fee contract: Incentive contract may be developled to speed up the...

Calculating Project Costs Determine the final price paid by the buyer in these scenarios a) Cost plus Incentive fee contract Incentive contracts may be developed to speed up the completing of a...

1.Explain what a draft contract is. Who should review the draft contract before is executed by all the parties? 2. List the basic parts of a contract. 3. Explain what an executed contract is. Who...

Which behavior is this behavior by an acquisition stakeholder? Despite multiple requests from the Program Manager, the financial management representative has failed to provide historic spend...

1 . Explain what a draft contract is . Who should review the draft contract before is executed by all the parties? 2 . List the basic parts of a contract. 3 . Explain what an executed contract is ....

5. A Cost Plus Incentive Fee (CPIF) Contract has the following parameters: Target Cost = $300,000 Target Fee = $30,000 Share Ratio 75/25% Maximum Fee = $45,000 Minimum Fee = $15,000 The seller...

The following spectra for A and B correspond to two structural isomers. The NMR singlet at (1.16 in spectrum A disappears when the sample is shaken with D2O.The singlet at (0.6 ppm in the spectrum of...

You are single and earn an income of $85,000 a year. Recently, you sold stocks that you had held longer than a year for a gain of $25,000. How much tax will you pay on this gain?

Nonapportionable ( nonbusiness ) income generally includes passive and portfolio income. True False

The probabilities of a return on an investment of $5,000, $7,000, and $9,000 are 1 / 2, 3/8, and1 / 8.