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In this tutorial, we explore Fixed Price Incentive Fee contracts with a target cost of $150,000, target profit of $20,000, and a ceiling price of $180,000, and a share ratio of 60:40. With the actual cost of the project at $160,000, we calculate the cost variance as -$10,000, indicating a cost overrun. This will impact the seller negatively, as 40% of the cost variance is their responsibility.