question in procurement management knowledge area
Submitted by vijayavadrevu on Sun, 03/10/2013 - 06:26
Forums:
Question:
A fixed price plus incentive fee (FPI) contract has a target cost of $130,000, a target profit of $15,000, a target price of $145,000, a ceiling price of $160,000 and a share ratio of 80/20. The actual cost of the project was $150,000. How much profit does the seller make?
Answer given is $10,000
