Contract Types

Q$1.$

A cost$-$plus$-$incentive$-$fee contract has the following characteristics:

Target cost $=$$$100,000$

Target fee $=$$$12,000$

Minimum fee $=$$$9,000$

Maximum fee $=$$$14,000$

Sharing ratio $=\frac{80}{20}$

a$.$ How much will the seller be reimbursed if the cost of performing the work is $$95,000?$

b$.$ How much will the seller be reimbursed if the cost of performing the work is $$120,000?$

c$.$ How much will the seller be reimbursed if the cost of performing the work is $$80,000?$