Teatro Restoration, Inc., begins renovating an old theater for Urban Edge Productions, but after three months Teatro demands an extra $250,000. Urban Edge agrees to pay. Refer to Fact Pattern 13-4. If Teatro says it is asking for the extra $250,000 because ordinary business expenses have increased, the agreement is:

Question

Business

Brody Hutchinson

22 August, 12:06

Teatro Restoration, Inc., begins renovating an old theater for Urban Edge Productions, but after three months Teatro demands an extra $250,000. Urban Edge agrees to pay. Refer to Fact Pattern 13-4. If Teatro says it is asking for the extra $250,000 because ordinary business expenses have increased, the agreement is:

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Answers (1)

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Johnathon Owen · Answer 1

Answer: Cost plus contract

Explanation:

A contract in which the contractor is reimbursed on allowable expenses and paid an agreed percentage of the total allowable expenses.