How much will the total contract cost

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Problem 1. You are completing a project to design a Miami, Florida swimming pool. The contract is a cost plus incentive fee contract. The target costs are $300,000, with a 10-percent target profit. However, the project came in at $275,000. The incentive split is 80/20. How much will the total contract cost? Show all work!

Problem 2. A buyer negotiates a fixed price incentive contract with the seller. The target cost is $200,000, the target profit is $35,000, and the target price is $250,000. The buyer negotiates a ceiling price of $280,000 and a share ratio of 70/30. If the contract is completed with actual costs of $180,000, how much profit will the buyer pay the seller? Show all

Reference no: EM133316137

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