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NEW QUESTION: 1
Assume that your company has a cost-plus-fixed-fee contract. The contract value is $110,000, which consists of $100,000 of estimated costs with a 10-percent fixed fee. Assume that your company completes the work but only incurs $80,000 in actual cost. What is the total cost to the project?
A. $125,000
B. $10,0000
C. $80,000
D. $90,000
Answer: D
Explanation:
Explanation/Reference:
Explanation:
In this situation the fixed-fee of $10,000 does not change but now represents a seller profit of 12.5 percent on incurred costs. This means that the total cost to the project is $90,000.


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