What is the range of incentive effectiveness

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cost-plus-incentive-fee contract has a negotiated target cost of $50,000,000.00, a target fee of 10%, a minimum fee of 6% and a sharing ratio of 80/20. What is the range of incentive effectiveness (RIE)?

a) Plus or minus $5 million or 10%
b) Plus or minus $10 million or 20%
c) Plus or minus $9 million or 27%
d) Plus or minus $6 million or 25%

 

Reference no: EM13190365

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