Point of Total Assumption

Point of total assumption, abbreviatef as PTA, is the difference between the ceiling and target prices, divided by the buyer’s portion of the share ratio for that price range, plus the target cost.

 

Point of Total Assumption Formula

\(\large{ PTA =  \frac{ CP \;-\; TP }{  BSR}  + TC  }\)

Symbol

\(\large{ PTA }\) = point of total assumption

\(\large{ BSR }\) = buyer's share ratio

\(\large{ CP }\) = ceiling price

\(\large{ TC }\) = target cost

\(\large{ TP }\) = target price