Your company has negotiated a cost plus incentive fee agreement with a vendor. The contract target costs is set at $300,000. The vendors target profit is 10%, and the share ratio is 80/20 in favor of the company. The actual costs of the project is $275,000. What is the total cost of the contract to the vendor?
My question is the 80/20 share ratio in favor of the company: it doesn't specify which company the buyer or the seller. Which percentage refers to buyer and which refers to seller?

Thanks for the help.