PMP Question 116

A project is contracted as a Cost-Plus-Incentive-Fee (CPIF) type of contract. The project is negotiated such that if the final costs are less than expected costs, the sharing formula for cost savings is 75:25. The targeted cost is US$ 100,000 with an 8% incentive fee on the targeted cost. If the project comes in at US$ 80,000, what would be the cost of the total contract?

A. US$ 108,000
B. US$ 93,000
C. US$ 112,000
D. US$ 91,400

B. US$ 93,000