PMI Exam Questions

How much profit does the seller make?

A fixed-price-plus-incentive-fee (FPI) contract has a target cost of $130,000, a target profit of $15,000, a target price of $145,000, a ceiling price of $160,000, and a share ratio of 80/20. The actual cost of the project was $150,000. How much profit does the seller make?

A.
$10,000

B.
$15,000

C.
$o

D.
$5,000