Question: PLEASE DO FOLLOWING PROBLEM; ANSWER IS PROVIDED BUT I WANT TO SEE THE STEPS TO GET THERE- THANKS Fixed Price Incentive Fee Calculation. In this
PLEASE DO FOLLOWING PROBLEM; ANSWER IS PROVIDED BUT I WANT TO SEE THE STEPS TO GET THERE- THANKS
Fixed Price Incentive Fee Calculation. In this fixed price incentive fee contract, the target cost is estimated at $150,000 and the target fee is $30,000. The project is over, and the buyer has that the costs were, in fact, $210,000. Because the seller's cost came in higher than the estimated costs, the seller shares in the added cost: 60% to the buyer and 40% to the seller. The ceiling price is $200,000. Calculate the final price.
$200,000
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