Question: Refer to the CPIF and FPIF example problems in Examples 12.2 and 12.4. a. In both the CPIF and FPIF cases, what is the price

Refer to the CPIF and FPIF example problems in Examples 12.2 and 12.4.

a. In both the CPIF and FPIF cases, what is the price if Cac = $90,000? What is the contractor’s profit?

b. In both cases, what is the price if Cac = $160,000. What is the contractor’s profit?

c. Sometimes two CSRs are used, a different one each for underruns and overruns.

What are the answers to

a. and

b. if the CSR is 70/30 for underruns and 80/20 for overruns?

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