A cost-plus-incentive fee (CPIF) contract has the following characteristics: • Cost sharing ratio: 60/40 Target cost: $100,000 • Fixed Fee: $12,000 • Maximum Gain/Pain Incentive: $10,000 • Minimum Gain/Pain Incentive fee: $4,000 How much will the contractor be reimbursed if the Cost of performing work is $95,000: am. $107,000 an. $109,000 ao. $111,000 ap. None of the above

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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1.10. A cost-plus-incentive fee (CPIF) contract has the following
characteristics:
• Cost sharing ratio: 60/40
• Target cost: $100,000
• Fixed Fee: $12,000
Maximum Gain/Pain Incentive: $10,000
• Minimum Gain/Pain Incentive fee: $4,000
How much will the contractor be reimbursed if the Cost of performing
work is $95,000:
am. $107,000
an. $109,000
ao. $111,000
ap. None of the above
Answer Justification
Transcribed Image Text:1.10. A cost-plus-incentive fee (CPIF) contract has the following characteristics: • Cost sharing ratio: 60/40 • Target cost: $100,000 • Fixed Fee: $12,000 Maximum Gain/Pain Incentive: $10,000 • Minimum Gain/Pain Incentive fee: $4,000 How much will the contractor be reimbursed if the Cost of performing work is $95,000: am. $107,000 an. $109,000 ao. $111,000 ap. None of the above Answer Justification
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