Question: Using the same data from Problem 20, and the same contract type, how much will the contractor be reimbursed if the cost of performing the

Using the same data from Problem 20, and the same contract type, how much will the contractor be reimbursed if the cost of performing the work is $85,000?

Data from problem 20

A cost-plus-incentive-fee contract has the following characteristics:
Sharing ratio: 80/20
Target cost: $100,000
Target fee: $12,000
Maximum fee: $14,000
Minimum fee: $9,000 


A. $97,000
B. $99,000
C. $112,000
D. $114,000

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