PMHUB-G Re: PTA question

Target Price = Target Cost + Target Fee

PTA = [(ceiling price - target price)/buyer's share] + target cost
= [($1.2m - $1.1m)/0.8] + $1m
= $1,125.000

On May 12, 10:18 pm, M L <elc...@gmail.com> wrote:
> 46. In a project, a Cost incentive contract has been awarded to a
> contractor with the following parameters:
>
> Target cost: $1,000,000
> Target contractor fee: $100,000
> Cost benefit sharing ratio: 80%/20%
> Price ceiling: $1,200,000
>
> What is the Point of total assumption (PTA, Breakpoint) of the project?46
> o $1,000,000http://forums.pmhub.net/viewtopic.php?f=50&t=13730&p=33770&hilit=brea...

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