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The formula of calculating point of total assumption is:

Target cost - ((Ceiling price + Target price) - Sellers % share of cost overrun).

Target cost - ((Ceiling price + Target price) divided by Sellers % share of cost overrun).

Target cost + ((Ceiling price + Target price) - Sellers % share of cost overrun).

Target cost + ((Ceiling price - Target price) divided by Sellers % share of cost overrun).

Explanation

T99-Overview of Control Procurements and ITTOs

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