Question from Rita : procurement KA
Submitted by dipti1pmp on Mon, 10/20/2014 - 04:52
Sellers perspective:
In FPIF the target cost=$150,000 and the target fee= $30,000. The project is over and the buyer has agreed that the costs were in fact $210,000. Becasue the selleers cost came in higher than the target cost the sellers shares in the added cost: 60 % buyer and 40% seller
Calculate:
Final fee
Final price
PTA
Note the ceiling price.
Can some one help me arrive at answers. Also how to calculate the ceiling price in this case? I am stuck at ceiling price calculation very badly.
Ans: Final fee=$6000
Final price=$200,000
PTA= $183,333
Forums:
prakavi
Wed, 10/22/2014 - 06:45
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Hi,
Hi,
First we have to calculate the incentive to the customer.
Incentive= (target cost- actualcost)xseller share percentage
=(15000-210000)x40/100=- 24000(negative)
overhead fee =Traget fee+incentive
ie 30000-24000= 6000 which is the final fee
final price = Actual cost+overhead fee
ie 21000+6000= 216000
But the celing price is 200000. So the final price cannot exceed 20000
FOR PTA simply apply the formula.
As per your problem celing price is not given. From book celing price is given as 20000.
Regards
prakavi
saketbansal
Wed, 10/22/2014 - 16:12
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You may like to check our
You may like to check our blog and video on this topic here
http://www.izenbridge.com/blog/pmp-exam-point-of-total-assumption/