PMI Exam Questions

How much profit does the seller make?

A cost-plus-incentive-fee (CPIF) contract has an estimated cost of $150,000 with a predetermined fee of $15,000 and a share ratio of 80/20. The actual cost of the project is $130,000. How much profit does the seller make?

A.
$31,000

B.
$19,000

C.
$15,000

D.
None of the above