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Perform Contract Calculations Assignment

Scenario: The buyer and seller are engaging in a FPIF (Fixed-Price Incentive Fee) contract and agree on the following parameters:

1. Target Cost: $380,000
2. Actual Cost: $395,000
3. Sharing Ratio: Buyer 70%/30% Seller
4. Target Profit (AKA Target Fee): $20,000
5. Price Ceiling (AKA Point of Total Assumption): $410, 000

Fill in the blanks below with the appropriate values:

1. Target Cost [____]
2. Actual Cost [___]
3. Variance (Over/Under) [ ___]
4. Overrun/Underrun [___]
5. Target Profit [___]
6. Profit [___]
7. Actual Cost [___]
8. Price [___]
9. Price Ceiling [___]
10. Final Price [___]