You are running a project for a customer based on a cost-reimbursable contract with the following terms:

Target costs: $ 1,000,000
Fixed fee: $ 100,000
Benefit/cost sharing: 80% / 20%
Price ceiling: $ 1,200,000

Which is the PTA (= point of total assumption, break point) of the project?

a) $1,300,000
b) $1,500,000
c) $80,000
d) $1,125,000