## CPIF

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taterarpit
Contributor
Posts: 111
Joined: Sat Jul 26, 2014 6:42 pm

### CPIF

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
taterarpit
Contributor
Posts: 111
Joined: Sat Jul 26, 2014 6:42 pm

### Re: CPIF

i have understood the question i just missed a simple step but when i read that again i got the answer

Sometimes this happens
namita
Super Member
Posts: 502
Joined: Wed Dec 11, 2013 10:25 am

### Re: CPIF

This is very important trick to handle for actual exam also .. specially after first hour of exam
Housam Bassal
Contributor
Posts: 229
Joined: Fri Nov 04, 2016 7:38 pm

### Re: CPIF

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?
Housam Bassal
manishpn
Expert
Posts: 2538
Joined: Sat Jan 04, 2014 3:55 pm

### Re: CPIF

yes thats correct
Br,
Manish P
PMP, PMI - ACP, SAFe Agilist
http://www.izenbridge.com/blog/7-effect ... ification/

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