PTA calculation
Submitted by chidambararaj1 on Tue, 07/23/2013 - 22:57
Forums:
Guys pls help
A contractor has agreed to build a storage depot for a target price of $90,000, but there is some uncertainty involved in the project, so buyer & seller have agreed that the ceiling price will be $100,000. The buyer will pay 100% costs upto $80, 000 and 75% of costs between $80,000 & $100,000 but any cost over $100,000 is absorbed by the contractor. What is the point of total assumption for this contract for the buyer?
1. $100, 000
2. $90, 000
3. $87, 750.25
4. $93, 333.33
Ans: option 4.. how?
