You are negotiating a contract with the WeScamU Company and you are concerned that they will overcharge you for their costs, so you have included a PTA (point of total Assumption) clause in the contract. From the information provided below, what is the PTA? Target cost = $494,000.00 Target Price = $535,000.00 Ceiling prices = $629,000.00 Buyer/Seller ratio is 80/20 for overruns. Note: enter dollar amount only and two decimal places. For example, 450000.50

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter10: Inventory
Section: Chapter Questions
Problem 4MC: If goods are shipped FOB destination, which of the following is true? A. Title to the goods will...
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You are negotiating a contract with the WeScamU Company and you are concerned that
they will overcharge you for their costs, so you have included a PTA (point of total
Assumption) clause in the contract. From the information provided below, what is the PTA?
Target cost = $494,000.00
Target Price = $535,000.00
Ceiling prices = $629,000.00
Buyer/Seller ratio is 80/20 for overruns.
Note: enter dollar amount only and two decimal places. For example, 450000.50
Your Answer:
6:00 p.m. ✓
Transcribed Image Text:You are negotiating a contract with the WeScamU Company and you are concerned that they will overcharge you for their costs, so you have included a PTA (point of total Assumption) clause in the contract. From the information provided below, what is the PTA? Target cost = $494,000.00 Target Price = $535,000.00 Ceiling prices = $629,000.00 Buyer/Seller ratio is 80/20 for overruns. Note: enter dollar amount only and two decimal places. For example, 450000.50 Your Answer: 6:00 p.m. ✓
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