Calculate the cost savings-calculate the supplier share of, Operation Management

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Calculate the cost savings-calculate the supplier share of

Given the following information for a cost-plus-incentive-fee Contract: Target Cost: $4,000,000 Final Cost: $700,000 Target Profit: $90.000 Maximum Fee: $120,000 Minimum Fee: $30,000 Supplier’s Share Ratio: 0.05 (1) Calculate the cost savings. (2) Calculate the supplier’s share of the cost savings. (3) Calculate the final price.

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