Section: Mix Questions
Explanation:
To calculate the fee that the buyer must pay, actual costs are compared with the target cost. If actual costs are less than the target cost, the seller will earn profit that is additional to the target profit. If actual costs are more than the target cost, the seller will lose profit from the target profit. The amount of profit is determined by the share ratio (with the buyer's share listed first). In this example, the seller is under target cost by $30,000. That amount will be split 70/30. So the buyer keeps $21,000, and the seller receives an additional $9,000 added to the target profit, which is the incentive. Total fee is $39,000.

According to the PMBOKGuide, stakeholder engagement is the process of communicating and working with stakeholders to meet their needs and expectations, address issues, and foster appropriate stakeholder involvement in project activities throughout the project life cycle1. The project manager should proactively engage with stakeholders to understand their interests, needs, expectations, and influence on the project, and to manage any conflicts or issues that may arise2.
In this scenario, the project manager is facing a situation where an important stakeholder is dissatisfied with the way the project is being executed and threatens to withdraw support for the project. This could have a negative impact on the project's success, as the stakeholder may have a high level of power, interest, or influence on the project. The best way to handle this situation is to approach the stakeholder to address the concerns and resolve the issue. The project manager should use effective communication skills, such as active listening, empathy, and feedback, to understand the stakeholder's perspective and expectations, and to explain the project's status, progress, and performance. The project manager should also use negotiation and problem-solving techniques to reach a mutually acceptable agreement with the stakeholder and to restore trust and confidence in the project.
Option B is not the best answer because it does not directly address the stakeholder's concerns or the root cause of the issue. Consulting the risk management plan may help the project manager identify and analyze the potential risks and responses related to stakeholder engagement, but it does not provide a solution or improvement to the current situation. Option C is not the best answer because it does not demonstrate the project manager's responsibility or accountability for the project. Escalating the issue to the project management office (PMO) may help the project manager obtain guidance or support from the PMO, but it does not ensure that the stakeholder's concerns are adequately addressed or resolved. Option D is not the best answer because it does not show respect or empathy for the stakeholder. Referring the stakeholder to the project sponsor may help the project manager leverage the sponsor's authority or influence, but it does not foster a positive relationship or collaboration with the stakeholder. References: 1 PMBOKGuide, 6th edition, page 5132 PMBOKGuide, 6th edition, page 515.