PMP Formula of the Week: Fixed-Price Incentive Fee Contract

PMPFormulaOTW475166460As the seller, you are completing a project under a fixed-price incentive fee contract, with a fixed price of $130,000. The incentive (or penalty) is set at $2,000 per week for each week that the project is under (or over) schedule. When you deliver the project two weeks late, how much money will you receive?

A. $130,000
B. $134,000
C. $126,000
D. $138,000

Related Resources
PMP Exam Prep Mobile App
Project Management White Papers

Related Courses
IT Project Management
Project Management Fundamentals
Project Management, Leadership, and Communication
PMP Exam Prep Boot Camp

Please support our Sponsors here :