Question: A contract with a vendor stipulates a cost plus incentive fee contract. The contract has a target cost of $150,000. The vendors target profit is

A contract with a vendor stipulates a cost plus incentive fee contract. The contract has a target cost of $150,000. The vendors target profit is set at 10% and the share ratio is 80/20. The minimum fee the seller will accept is $12,000 and the maximum fee you are willing to pay is $20,000. The actual cost of the contract ends up being $175,000. What is the total cost of the contract to the buyer?

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