Question

The Brazilian government wants to build a global satellite transmission system. The manufacturer will receive $500,000 above actual development costs, whatever those costs may be. Payment to the manufacturer of the satellite transmission system has been determined using:

Answer 1

Answer: cost-plus-fixed-fee pricing

Step-by-step explanation:

The cost-plus fixed fee pricing refers to the pricing whereby the contractor is paid for the normal expenses that's incurred plus an additional fixed fee.

In this case, the satellite manufacturer will get a mutually agreed upon profit which is above all the costs that was involved in the project. Therefore, this refers to the cost-plus-fixed-fee pricing.