Question: Your company has signed a fixed price incentive fee contract with a seller with the following details: Target Cost = 3 0 0 , 0

Your company has signed a fixed price incentive fee contract with a seller with the following details:
Target Cost =300,000 USD
Target Incentive Fee =50,000 USD
Share Ratio =70/30
Ceiling Price =400,000 USD
Actual Cost =320,000 USD
Calculate the actual price paid to the seller.

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