Ask Question
18 October, 22:27

A cost plus incentive fee (CPIF) contract has an estimated cost of $150K with a predetermined fee of $15K and a share ratio of buyer-to-seller equal to 80/20. The actual cost of the project is $120K. What was the total payment to the contractor?

+1
Answers (1)
  1. 18 October, 23:25
    0
    Answer: Total payment to the contractor = 24000

    Explanation:

    Estimated contract fee = $150 000

    Predetermine fee = $15000

    Predetermined fee percentage = 15000/150000 = 10%

    The Fee is 10% of the contract cost then the excess contract cost is shared on an 80/20 ratio. The contractor receives a 20% share

    Fee for the contract ($120 000) = 120 000 x 10/100 = 12000

    Share (contractor) = $ 120000 x 20/100 = 24000

    Total payment to the contractor = 24000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “A cost plus incentive fee (CPIF) contract has an estimated cost of $150K with a predetermined fee of $15K and a share ratio of ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers