CDE, Inc.

Vendor: ISM
Product: CORE
Update on: Oct 18, 2025
Questions: 312

ISM CORE Question Answer

CDE, Inc. contracts with a supplier for the fabrication of trade show booths and displays. The contract is on a cost-plus fixed fee (CPFF) basis, with the supplier's agreed-upon fee set at $15,000

and the estimated allowable cost of materials set at $20,000, for a total of $35,000. The supplier is able to bring down total material costs to $18,500. Given this situation, how much can the

supplier bill CDE for the project?

It will depend upon the profit margin allowed by the contract

$35,000

$33,500

Up to $35,000, based on CDE's acceptance of components