Question: In a cost plus incentive fee contract, the cost is estimated at $310,000 and the fee at $40,000. The project is over, and the buyer

In a cost plus incentive fee contract, the cost is estimated at $310,000 and the fee at $40,000. The project is over, and the buyer has agreed that the costs were, in fact, $280,000. Because the seller's costs came In lower than the estimated costs, the seller shares in the savings: 60 percent to the buyer and 40 percent to the seller. Calculate the final fee.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

The Flores Co. is analyzing proposed investment in new equipment to produce electrical power strips for computers. The cost of the new equipment is $2,250,000, which has an expected life of six...

Calculating Project Costs Determine the final price paid by the buyer in these scenarios (show all work) a. Cost plus incentive fee contract: Incentive contract may be developled to speed up the...

Calculating Project Costs Determine the final price paid by the buyer in these scenarios a) Cost plus Incentive fee contract Incentive contracts may be developed to speed up the completing of a...

Calculating Project Costs Determine the nal price paid by the buyer in these scenarios. a] Cost plus Incentive fee contract: Incentive contracts may be developed to speed up the completing of a...

Alt Can MGT6151.E1 Winter 2020 Multiple-Choice Exercise - 2 26) In a Time and Materials contract, what is the biggest advantage a seller has? The seller's profit is included in each hour of work. The...

Question 12 from the seller's perspective. In Cost plus incentive fee contract, the target cost is estimated at $210,000, and the target fee is set at $25,000. The project is complete, and the buyer...

Under a Cost Plus Incentive Fee Contract (CPIF), how much would the buyer pay the supplier under the following conditions: Estimated costs $95,000 Agreed upon performance fee- $15,000 Incentive fee...

Which behavior is this behavior by an acquisition stakeholder? Despite multiple requests from the Program Manager, the financial management representative has failed to provide historic spend...

Need help. Thanks. Question 9 (1 point) v Saved Cost Plus Incentive Fee Calculation. In this cost plus incentive fee contract, the cost is estimated at $210,000 and the fee at $25,000. The project is...

Cost Plus Incentive Fee Calculation. In this cost plus incentive fee contract, the cost is estimated at $210,000 and the fee at $25,000. The project is complete, and the buyer has agreed that the...

Create a business pitch for your business plan in a 20- to 25-slide Microsoft PowerPoint presentation that addresses the following: Company Headline Problem Worth Solving Our Solution Target Market...

Think of circumstances (industries or products) that serve as examples of when to use the following types of business segmentation.

When a firm is considering opening a new branch, which of the following factors is most likely to influence its decision by weighing the costs and benefits? The projected increase in sales and...

Extending a Turing Machine to have more than one tape increases its language recognizing power. * True False