1.

a.In a Cost Plus Incentive Fee (CPIF) contract, the target cost is estimated at $250,000 and the fee at $35,000. The actual cost came to be $210,000. Since there was a cost savings, the seller shares the savings at a 70/30 ratio (70 percent to the buyer and 30 percent to the seller). What are the final fee and final price?

$47,000 and $210,000

$35,000 and $210,000

$35,000 and $257,000

$47,000 and $257,000

b.

You are managing a software development project to automate an accounting process. In this Cost Plus Incentive Fee Contract, you have negotiated the following: Target cost: $120,000 and target fee: $8,000 Max fee: $12,000 and min fee: $4,000 Sharing ratio: 80/20 (buyer/seller) The actual cost was $145,000. What is the total price the buyer will Bay?

$148,000

$149,000

$144,000

$153,000