Information regarding a cpif contract


Given the following information regarding a CPIF contract, what would be the final contract price at the different final cost amounts.

Target Cost    $2,000,000
Target Fee    $ 150,000

Share Ratio:

Under Target    90/10
Over Target      80/20
Maximum Fee    $ 240,000
Minimum Fee     $ 60,000

a. Final cost is $1,000,000

b. Final Cost is $1,800,000

c. Final cost is $2,150,000

d. Final cost is $2,400,000

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