Incentive fee calculation
Submitted by sunitaPMP on Thu, 03/07/2013 - 05:46
Forums:
Please help me with this question.I am not able to understand Target cost ,Target price etc in this context.
Q:You are completing the closeout of a project to design a warehouse in Columbus, Ohio. The contract is a Cost Plus Incentive Fee contract. The target costs are $300,000, with a 10 percent target profit. However, the project came in at $275,000. The incentive split is 80/20. How much is the total contract cost??
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$300,000
