No$.$

Characteristics

Contract Type

$($Corresponding Letter$)$

$1$

An almost bottomless pit of funds whereby the seller is reimbursed all costs as well as a profit for all money spent.

$$

$2$

A sharing formula for costs above and below a target as well as a ceiling and floor on profits.

B

$3$

A profit fixed in dollars rather than percent.

$$

$$

$4$

A profit based on how well the buyer likes the result.

$$

$$

$5$

A contract which does not allow for profits and where the seller pays part of the cost.

$$

$6$

A contract with a point of total assumption.

$$

$$

$7$

A contract where the maximum risk resides with the seller

$$

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