Question: 2 This incentive contract is based on a target price of $260,000 with expected costs of $240,000 and target incentive of $5,000. The contract specifies
2
This incentive contract is based on a target price of $260,000 with expected costs of $240,000 and target incentive of $5,000. The contract specifies a share ratio of 80/20. If the actual cost is $249,000, what is the seller's final fee?
A
$5,000
B
$13,800
C
$11,000
D
$7,200
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