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Final Contract price of 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

Solution Summary

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

$2.19