Question: 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

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 25% and has spent 90,000 USD to complete the task. Calculate the profit and actual price paid to the seller.

2. Your company has signed a fixed price incentive fee contract with a seller with the following details:

Target Cost = 300,000 USD

Target Incentive Fee = 50,000 USD

Share Ratio = 70/30

Ceiling Price = 400,000 USD

Actual Cost = 320,000 USD

Calculate the actual price paid to the seller.

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