### Fixed price incentive (fpi) contract

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##### Reference no: EM13938196

I. The seller has agreed to a fixed price incentive (FPI) contract. The target cost is \$450,000 and the target fee is 10% of the target cost. The price ceiling is \$540,000 and the buyer/seller share ratio 80/20. The final actual cost is \$430,000. Determine the following:
Final price:

2. The seller has agreed to a fixed price incentive (FPI) contract. The target cost is \$450,000 and the target fee is 10% of the target cost. The price ceiling is \$500,000 and the buyer/seller share ratio is 80/20. The final actual cost is \$520,000. Determine the following:
Final price:

3. The seller has agreed to a cost plus fixed fee (CPFF) contract. The target cost is \$450,000 and the fixed fee is 10% of the target cost. The final actual cost is \$500,000. Determine the following:
Final fee:
Final price:

4. The seller has agreed to a cost plus incentive fee (CPIF) contract. The target cost is \$450,000 and the target fee is I0% of the target cost. The maximum fee is \$50,000, the minimum fee is \$17,000 and the buyer/seller share ratio is 80/20. The final cost is \$600,000. Determine the following:

Final price:

5. The seller has agreed to a cost plus incentive fee (CPIF) contract. The target cost is \$450,000 and the fixed tee is I 0% of the target cost. The maximum fee is \$50,000. the minimum fee is \$17.000 and the share ratio is 80/20. The final cost is \$400,000.
Determine the following:

6. Some 10 months ago you awarded a cost plus fixed fee (CPFF) contract to a large company to provide a telecommunications infra-structure at several locations. The contract was negotiated with a target cost of\$200,000 and a fee of 0% of the target cost. The contract is complete and the final costs come in at \$150.000. What is the total amount you must pay to the supplier?

7. As part of a project to renovate the airport in Peekskill, New York, you awarded a cost plus incentive fee (C PIF) contract for upgrading the restaurant and lounges. The target costs were negotiated at \$200,000, with a 10% target profit. The buyer/seller share ratio is 80/20. The project was completed at \$180,000. How much is the total contract cost which must be paid to the supplier?

8. You negotiated a cost plus fixed fee plus award fee (CPFF/AF) contract with a seller for a projected total value of \$505,000, of which \$500,000 is the target cost and \$5,000 is the amount of the fixed fee. You have also set aside a budget for a possible award fee, with a not-to-exceed amount of\$25,000. The seller's final cost comes in at \$533,000. What is the final payment to the seller?

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