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CPIF

Posted: Fri Aug 22, 2014 11:34 am
by taterarpit
Q2:Given are the statistics for a Project. Target Cost = $150,000; Target Fee = $30,000; Target
Price = $180,000; Sharing Ratio = 60/40; Ceiling Price = $200,000; Actual Cost = $210,000.
Calculate the Fee and the Final Price for the project
a) Fee = $30,000, Final Price = $210,000
b) Fee = $30,000, Final Price = $200, 000
c) Fee = $6,000, Final Price = $200, 000
d) Fee = $6,000, Final Price = $240,000

Re: CPIF

Posted: Fri Aug 22, 2014 11:53 am
by taterarpit
i have understood the question :-) i just missed a simple step but when i read that again i got the answer :-)

Sometimes this happens :-)

Re: CPIF

Posted: Sat Aug 23, 2014 6:14 am
by namita
This is very important trick to handle for actual exam also :).. specially after first hour of exam

Re: CPIF

Posted: Mon Dec 12, 2016 6:23 am
by Housam Bassal
Calculation for Actual Fee/Profit:
Given figures ,
Target Cost = $150,000
Target Profit $30,000
Actual Cost = $210,000
Target Fee = $30,000
So , Savings amount due to Cost under run $150,000- $210,000= - $ 60,000
Profit Sharing Ratio = 60:40
So, Sellers share = 0.40 * (- $ 60,000)=- $ 24,000
Therefore, Actual Profit = $30,000- $ 24,000 = $ 6,000
Ceiling Price = $200,000
Final price is ceiling price = $200,000

Therefore the correct answer is c.

could you please confirm if the calculation and option c is right?

Re: CPIF

Posted: Mon Dec 12, 2016 6:58 am
by manishpn
yes thats correct