Project Management Professional (PMP) Exam Practice – Question1648 | Project Management Professional PMP Mock Exam Practice

Assume that your company has a cost-plus-fixed-fee contract. The contract value is $110,000, which consists of $100,000 of estimated costs with a 10-percent fixed fee. Assume that your company completes the work but only incurs $80,000 in actual cost. What
is the total cost to the project?

A. $80,000
B. $90,000
C. $10,0000
D. $125,000

Correct Answer: B

Explanation:

Explanation:
In this situation the fixed-fee of $10,000 does not change but now represents a seller profit of 12.5 percent on incurred costs. This means that the total cost to the project is $90,000.