Hi, In the below questions all answers seem wrong to me and my answer comes as 53750(45000+8750). [0.25*35000=8750 Incentive fee] In a negotiated cost plus incentive fee (SPIF) contract, the following figures were finalized: a target cost of $355,000, a target fee of $45,000, and a sharing ratio of 75/25. If the actual cost of the project is $320,000, what will be the final fee to the seller? $36,250 $8,750 $35,000 $45,000 Correct Option: B EXPLANATION As the cost of the project is lower than expected, the seller will receive their $45,000 fee plus $25% of the savings between $355,000 and $325,000 ($25,000 x 25% = $7,500). $45,000 + $7,500 = $52,500.