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Calculate the Point of Total Assumption (PTA) for a FPIF contract given the flowing information:

Ceiling Price = $1,700,000

Target Cost = $1,375,000

Target Price = $1,475,000

Government share of over-target = 75%

Contractor share of over-target = 25%

A) 1,125,000

B) 1,150,000

C) 1,675,000

D) 1,750,000

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M91984594

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