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NEW QUESTION: 1
Assume that your company is working under a fixed-price-incentive contract. It has a target cost of $100,000, a target profit of 10%, a price ceiling of $120,000, and a share formula of 80/20. Assume that your company completes all of the work but has actual costs of $110,000. What is the final value of this procurement?
A. $118,000
B. $110,000
C. $120,000
D. $132,000
Answer: A
Explanation:
In this situation, there is a $10,000 overrun from the target costs. Applying the 80/20 share ratio, the seller's share of the overrun is 20% of $10,000 or a minus $2,000 in earned fee. The final value of this procurement is $110,000 in costs, plus a seller fee of $10,000 less $2,000, or $8,000 for a final price of $118,000. [Monitoring and Controlling] Fleming 2003, 92
NEW QUESTION: 2
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E. Rules
Answer: B,C,D,E
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B. The requirement "automatic assignment of installers" was suggested by Tom Jones.
C. Users can record length of time for each phone installation.
D. The system will be available 24 hours a day.
Answer: A,B
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