Your company has mandated that all vendor contracts be cost reimbursable. The target cost for certain procurement is $900,000 with a target price of $960,000, a target fee of 10% and a price ceiling of $1,000,000. The share ratio is 50% for the buyer. What is the point of total assumption for this procurement?

A)$960,000

B)$900,000

C)$920,000

D)$1,000,000

PTA = Target cost + [(Ceiling price -(target cost + target fee))/buyer's share ratio]