You have been awarded a Fixed-Price-Incentive-Fee (FPIF) con…
You have been awarded a Fixed-Price-Incentive-Fee (FPIF) contract. Your negotiated target cost is $150,000 with a fee (profit) of $25,000. The customer has agreed to a 60/40 sharing ratio and a ceiling price of $200,000. In summary, Negotiated Target Cost = $150,000 Target Fee (Profit) = $25,000 Ceiling Price = $200,000 Cost Sharing Ratio (CSR) = 60/40 What is your final project price (i.e. what the buyer will pay) if your final actual cost is $140,000?