The buyer has negotiated a cost-plus-incentive fee contract with the seller. The contract has a target cost of $300,000, a target fee of $40,000, a share ratio of 80/20, a maximum fee of $60,000, and a minimum fee of $10,000. If the seller has actual costs of
$380,000, how much fee will the buyer pay?
A. $104,000
B. $56,000
C. $30,000
D. $24,000
$380,000, how much fee will the buyer pay?
A. $104,000
B. $56,000
C. $30,000
D. $24,000