PMP Certification Mix Questions Test 3

Question : 63 of 70

Marks: +1, -0

Assume that your company has a cost-plus-fixed-fee contract. The contract value is

\$

110,000, which consists of

\$

100,000 of estimated costs with a 10-percent fixed fee. Assume that your company completes the work but only incurs

\$

80,000 in actual cost. What is the total cost to the project?

Solution:

In this situation the fixed-fee of

\$

10,000 does not change but now represents a seller profit of 12.5 percent on incurred costs. This means that the total cost to the project is

\$

90,000.

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