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The Burger Bin fast-food restaurant sells a mean of 24 burgers an hour and its burger sales Answer

A breeder records probabilities for two variables in a population of animals using the two-way table_Answer


1. A breeder records probabilities for two variables in a population of animals using the two-way table given here. Given that an animal is brown-haired, what is the probability that it’s short-haired?
Brown-haired Blond
Short-haired 0.06 0.23
Shaggy 0.51 0.20
A. 0.222
B. 0.06
C. 0.0306
D. 0.105

2. Which of the following is correct concerning the Poisson distribution?
A. The event being studied is restricted to a given span of time, space, or distance.
B. The mean is usually smaller than the variance.
C. The mean is usually larger than the variance.
D. Each event being studied must be statistically dependent on the previous event.

3. If the probability that an event will happen is 0.3, what is the probability of the event’s complement?
A. 0.3
B. 0.1
C. 1.0
D. 0.7

4. The Burger Bin fast-food restaurant sells a mean of 24 burgers an hour and its burger sales are normally
distributed. The standard deviation is 3.061. What is the probability that the Burger Bin will sell 12 to 18
burgers in an hour?
A. 0.239
B. 0.136
C. 0.475
D. 0.342

5. What is the value of ?
A. 1.6
B. 56
C. 6720
D. 336

Protestant Catholic Jewish Other
Democrat 0.35 0.10 0.03 0.02
Republican 0.27 0.09 0.02 0.01
Independent 0.05 0.03 0.02 0.01
6. The table above gives the probabilities of combinations of religion and political parties in a city in the United States. What is the probability that a randomly selected person will be a Protestant and at the same time be a Democrat or a Republican?
A. 0.35
B. 0.62
C. 0.67
D. 0.89

7. Using the standard normal table on page 822 of the textbook, determine the solution for P(0.00 ≤ z ≤
2.01).
A. 0.0222
B. 0.1179
C. 0.4821
D. 0.4778

8. If event A and event B are mutually exclusive, P(A or B) =
A. P(A) + P(B) – P(A and B).
B. P(A + B).
C. P(A) + P(B).
D. P(A) – P(B).

9. The area under the normal curve extending to the right from the midpoint to z is 0.17. Using the standard normal table on the textbook’s back endsheet, identify the relevant z value.
A. 0.0675
B. –0.0675
C. 0.4554
D. 0.44

10. In the binomial probability distribution, p stands for the
A. probability of failure in any given trial.
B. probability of success in any given trial.
C. number of trials.
D. number of successes.

11. The possible values of x in a certain continuous probability distribution consist of the infinite number of
values between 1 and 20. Solve for P(x = 4).
A. 0.03
B. 0.00
C. 0.05
D. 0.02

12. Each football game begins with a coin toss in the presence of the captains from the two opposing teams. (The winner of the toss has the choice of goals or of kicking or receiving the first kickoff.) A particular football team is scheduled to play 10 games this season. Let x = the number of coin tosses that the team captain wins during the season. Using the appropriate table in your textbook, solve for P(4 ≤ x ≤ 8).
A. 0.817
B. 0.171
C. 0.377
D. 0.246

13. Tornadoes for January in Kansas average 3.2 per month. What is the probability that, next January, Kansas will experience exactly two tornadoes?
A. 0.2226
B. 0.2087
C. 0.4076
D. 0.1304

14. A continuous probability distribution represents a random variable
A. that has a definite probability for the occurrence of a given integer.
B. having an infinite number of outcomes that may assume any number of values within an interval.
C. that’s best described in a histogram.
D. having outcomes that occur in counting numbers.

15. Find the z-score that determines that the area to the right of z is 0.8264.
A. 1.36
B. –1.36
C. –0.94
D. 0.94

16. The Burger Bin fast-food restaurant sells a mean of 24 burgers an hour and its burger sales are normally distributed. If hourly sales fall between 24 and 42 burgers 49.85% of the time, the standard deviation is _______ burgers.
A. 18
B. 9
C. 3
D. 6

17. An apartment complex has two activating devices in each fire detector. One is smoke-activated and has a probability of .98 of sounding an alarm when it should. The second is a heat-sensitive activator and has a probability of .95 of operating when it should. Each activator operates independently of the other. Presume a fire starts near a detector. What is the probability that both activating devices will work properly?
A. 0.931
B. 0.9895
C. 0.049
D. 0.965

18. Let event A = rolling a 1 on a die, and let event B = rolling an even number on a die. Which of the following is correct concerning these two events?
A. On a Venn diagram, event B would contain event A.
B. Events A and B are mutually exclusive.
C. On a Venn diagram, event A would overlap event B.
D. Events A and B are exhaustive.

19. A credit card company decides to study the frequency with which its cardholders charge for items from a certain chain of retail stores. The data values collected in the study appear to be normally distributed with a mean of 25 charged purchases and a standard deviation of 2 charged purchases. Out of the total number of cardholders, about how many would you expect are charging 27 or more purchases in this study?
A. 68.3%
B. 47.8%
C. 15.9%
D. 94.8%

20. For each car entering the drive-through of a fast-food restaurant, x = the number of occupants. In this study, x is a
A. dependent event.
B. joint probability.
C. continuous quantitative variable.
D. discrete random variable.

 

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Springfield Express is a luxury passenger carrier in Texas. All seats are first class, and the following data are available Answer

Springfield Express is a luxury passenger carrier in Texas. All seats are first class, and the following data are available:
Number of seats per passenger train car 90
Average load factor (percentage of seats filled) 70%
Average full passenger fare $160
Average variable cost per passenger $70
Fixed operating cost per month $3,150,000
a. What is the break-even point in passengers and revenues per month?
b. What is the break-even point in number of passenger train cars per month?
c. If Springfield Express raises its average passenger fare to $ 190, it is estimated that the average load factor will decrease to 60 percent. What will be the monthly break-even point in number of passenger cars?
d. (Refer to original data.) Fuel cost is a significant variable cost to any railway. If crude oil increases by $ 20 per barrel, it is estimated that variable cost per passenger will rise to $ 90. What will be the new break-even point in passengers and in number of passenger train cars?
e. Springfield Express has experienced an increase in variable cost per passenger to $ 85 and an increase in total fixed cost to $ 3,600,000. The company has decided to raise the average fare to $ 205. If the tax rate is 30 percent, how many passengers per month are needed to generate an after-tax profit of $ 750,000?
f. (Use original data). Springfield Express is considering offering a discounted fare of $ 120, which the company believes would increase the load factor to 80 percent. Only the additional seats would be sold at the discounted fare. Additional monthly advertising cost would be $ 180,000. How much pre-tax income would the discounted fare provide Springfield Express if the company has 50 passenger train cars per day, 30 days per month?
g. Springfield Express has an opportunity to obtain a new route that would be traveled 20 times per month. The company believes it can sell seats at $ 175 on the route, but the load factor would be only 60 percent. Fixed cost would increase by $ 250,000 per month for additional personnel, additional passenger train cars, maintenance, and so on. Variable cost per passenger would remain at $ 70.
1. Should the company obtain the route?
2. How many passenger train cars must Springfield Express operate to earn pre-tax income of $ 120,000 per month on this route?
3. If the load factor could be increased to 75 percent, how many passenger train cars must be operated to earn pre-tax income of $ 120,000 per month on this route?
4. What qualitative factors should be considered by Springfield Express in making its decision about acquiring this route?

 

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BUS 475 Integrated Business Topics All Weeks Discussions Individual and Learning Team assignments

BUS 475 Integrated Business Topics All Weeks Discussions Individual and Learning Team assignments Answer

 

Week one
Week one Discussions
Week Two
Week Two Discussions
Individual Assignment: Strategic Plan, Part I: Conceptualizing a Business
Learning Team Assignment: Value Alignment
Week Three
Week Three Discussions
Individual Assignment: Strategic Plan, Part II: SWOTT Analysis
Learning Team Assignment: Functional Area Interrelationships
Week Four
Week Four Discussions
Individual Assignment: Strategic Plan, Part III: Balanced Scorecard
Learning Team Assignment: Communication Plan Outline
Week Five
Week Five Discussions
Individual Assignment: Final Strategic Plan and Presentation

 

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Company J and Company K each recently reported the same earnings per share Answer

Ch. 3

1.Company J and Company K each recently reported the same earnings per share (EPS). Company J’s stock, however, trades at a higher price. Which of the following statements is correct?

A. a. Company J must have a higher P/E ratio.
B. b. Company J must have a higher market to book ratio.
C. c. Company J must be riskier
D. d. Company J must have fewer growth opportunities.
E. e. All of the statements above are correct.
Question 2 of 20
Which of the following statements is correct?

A. a. Many large firms operate different divisions in different industries, and this makes it hard to develop a meaningful set of industry benchmarks for these types of firms.
B. b. Financial ratios should be interpreted with caution because there exist seasonal and accounting differences that can reduce their comparability.
C. c. Financial ratios should be interpreted with caution because it may be difficult to say with certainty what is a “good” value. For example, in the case of the current ratio, a “good” value is neither high nor low.
D. d. Ratio analysis facilitates comparisons by standardizing numbers.
E. e. All of the statements above are correct.
Question 3 of 20
Which of the following actions can a firm take to increase its current ratio?

A. a. Issue short-term debt and use the proceeds to buy back long-term debt with a maturity of more than one year.
B. b. Reduce the company’s days sales outstanding to the industry average and use the resulting cash savings to purchase plant and equipment.
C. c. Use cash to purchase additional inventory.
D. d. Statements a and b are correct.
E. e. None of the statements above is correct.
Question 4 of 20
Which of the following actions will cause an increase in the quick ratio in the short run?

A. a. $1,000 worth of inventory is sold, and an account receivable is created. The receivable exceeds the inventory by the amount of profit on the sale, which is added to retained earnings.
B. b. A small subsidiary which was acquired for $100,000 two years ago and which was generating profits at the rate of 10 percent is sold for $100,000 cash. (Average company profits are 15 percent of assets.)
C. c. Marketable securities are sold at cost.
D. d. All of the answers above.
E. e. Answers a and b above.

Question 5 of 20
Company A is financed with 90 percent debt, whereas Company B, which has the same amount of total assets, is financed entirely with equity. Both companies have a marginal tax rate of 35 percent. Which of the following statements is correct?

A. a. If the two companies have the same basic earning power (BEP), Company B will have a higher return on assets.
B. b. If the two companies have the same return on assets, Company B will have a higher return on equity.
C. c. If the two companies have the same level of sales and basic earning power (BEP), Company B will have a lower profit margin.
D. d. All of the answers above are correct.
E. e. None of the answers above is correct.

Question 6 of 20
The Wilson Corporation has the following relationships:
Sales/Total assets 2.0
Return on assets (ROA) 4%
Return on equity (ROE) 6%
What is Wilson’s profit margin and debt ratio?

A. a. 2% and 0.33
B. b. 4% and 0.33
C. c. 4% and 0.67
D. d. 2% and 0.67
E. e. 4% and 0.50
Reset Selection

Question 7 of 20
Q Corp. has a basic earnings power (BEP) ratio of 15 percent, and has a times interest earned (TIE) ratio of 6. Total assets are $100,000. The corporate tax rate is 40 percent. What is Q Corp.’s return on assets (ROA)?

A. a. 7.5%
B. b. 10.0%
C. c. 12.2%
D. d. 13.1%
E. e. 14.5%

Question 8 of 20
Kansas Office Supply had $24,000,000 in sales last year. The company’s net income was $400,000. Its total assets turnover was 6.0. The company’s ROE was 15 percent. The company is financed entirely with debt and common equity. What is the company’s debt ratio?

A. a. 0.20
B. b. 0.30
C. c. 0.33
D. d. 0.60
E. e. 0.66

Question 9 of 20 = Inc.
Net income = $200,000
Earnings per share = $2.00
Stockholders’ equity = $2,000,000
Market/Book ratio = 0.20

A. a. $20.00
B. b. $ 8.00
C. c. $ 4.00
D. d. $ 2.00
E. e. $ 1.00

Question 10 of 20
Taft Technologies has the following relationships:
annual sales $1,200,000
current liabilities $375,000
days sales outstanding(DSO)(360-day year) 40
Inventory Turnover Ratio 4.8
current ratio 1.2
The company’s current assets consist of cash, inventories, and accounts receivable. How much cash does Taft have on its balance sheet?

A. -$ 8,333
B. $ 66,667
C. $125,000
D. $200,000
E. $316,667

Question 11 of 20
Info Technics Inc. has an equity multiplier of 2.50. The company’s assets are financed with some combination of long-term debt and common equity. What is the company’s debt ratio?

A. a. 51.20%
B. b. 26.00%
C. c. 39.36%
D. d. 65.00%
E. e. 60.00%

Question 12 of 20
Cutler Enterprises has current assets equal to $5 million. The company’s current ratio is 1.25, and its quick ratio is 0.75. What is the firm’s level of current liabilities (in millions)?

A. a. $2.85
B. b. $3.0
C. c. $4.0
D. d. $0.9
E. e. 1.9
Question 13 of 20
Lewis Inc. has sales of $3,600,000 per year, all of which are credit sales. Its days sales outstanding is 42 days. What is its average accounts receivable balance? Assume 360 days per year.

A. a. $238,090
B. b. $420,000
C. c. $280,000
D. d. $386,000
E. e. $400,000

Question 14 of 20
A firm has total interest charges of $20,000 per year, sales of $2,800,000, a tax rate of 40 percent, and a profit margin of 6 percent. What is the firm’s times-interest-earned ratio?

A. a. 15
B. b. 12.5
C. c. 11.5
D. d. 15.8
E. e. 16

Question 15 of 20
A fire has destroyed many of the financial records at Anderson Associates. You are assigned to piece together information to prepare a financial report. You have found that the firm’s return on equity is 12 percent and its debt ratio is 0.20. What is its return on assets?

A. a. 6.40%
B. b. 4.85%
C. c. 9.60%
D. d. 8.50%
E. e. 6.90%

Question 16 of 20
Rowe and Company has a debt ratio of 0.20, a total assets turnover of 0.25, and a profit margin of 10 percent. The president is unhappy with the current return on equity, and he thinks it could be doubled. This could be accomplished (1) by increasing the profit margin to 14 percent and (2) by increasing debt utilization. Total assets turnover will not change. What new debt ratio, along with the 14 percent profit margin, is required to double the return on equity?

A. a. 0.50
B. b. 0.56
C. c. 0.88
D. d. 0.78
E. e. 0.44

Question 17 of 20
Pinkerton Packaging’s ROE last year was 4.5 percent, but its management has developed a new operating plan designed to improve things. The new plan calls for a total debt ratio of 50 percent, which will result in interest charges of $240 per year. Management projects an EBIT of $800 on sales of $8,000, and it expects to have a total assets turnover ratio of 1.6. Under these conditions, the federal-plus-state tax rate will be 40 percent. If the changes are made, what return on equity will Pinkerton earn?

A. a. 2.50%
B. b. 13.44%
C. c. 13.00%
D. d. 14.02%
E. e. 14.57%

Question 18 of 20
Examining the ratios of a particular firm against the same measures for a small group of firms from the same industry, at a point in time, is an example of

A. a. Trend analysis.
B. b. Benchmarking.
C. c. Du Pont analysis.
D. d. Simple ratio analysis.
E. e. Industry analysis.

Question 19 of 20
Which of the following statements is correct?

A. a. Having a high current ratio and a high quick ratio is always a good indication that a firm is managing its liquidity position well.
B. b. A decline in the inventory turnover ratio suggests that the firm’s liquidity position is improving.
C. c. If a firm’s times-interest-earned ratio is relatively high, then this is one indication that the firm should be able to meet its debt obligations.
D. d. Since ROA measures the firm’s effective utilization of assets (without considering how these assets are financed), two firms with the same EBIT must have the same ROA.
E. e. If, through specific managerial actions, a firm has been able to increase its ROA, then, because of the fixed mathematical relationship between ROA and ROE, it must also have increased its ROE.

Question 20 of 20
Which of the following statements is correct?

A. a. Suppose two firms with the same amount of assets pay the same interest rate on their debt and earn the same rate of return on their assets and that ROA is positive. However, one firm has a higher debt ratio. Under these conditions, the firm with the higher debt ratio will also have a higher rate of return on common equity.
B. b. One of the problems of ratio analysis is that the relationships are subject to manipulation. For example, we know that if we use some cash to pay off some of our current liabilities, the current ratio will always increase, especially if the current ratio is weak initially, for example, below 1.0.
C. c. Generally, firms with high profit margins have high asset turnover ratios and firms with low profit margins have low turnover ratios; this result is exactly as predicted by the extended Du Pont equation.
D. d. Firms A and B have identical earnings and identical dividend payout ratios. If Firm A’s growth rate is higher than Firm Bs, then Firm A’s P/E ratio must be greater than Firm B’s P/E ratio.
E. e. Each of the above statements is false.

 

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MGMT 550 Managerial Communication Oral Presentation Assignment Week 4 Power Point Answer

MGMT 550 Managerial Communication Oral Presentation Assignment Week 4 Power Point Answer

 

Assignment: Oral Presentation
For the purpose of this assignment, you are the chief information officer for the Stone Goose Company. This is your big chance to be the principle change agent in the Stone Goose Company and to propose a new social media policy to executive management. Currently, your company does not use social media for communication or marketing. You have noticed that the employees, however, are quite fond of social media.
You may use your creative imagination to determine the type of business in which Stone Goose Company is involved. Brainstorm and propose ideas that will help the business improve operational efficiencies, save money, increase revenue or market share, improve guest satisfaction, increase social responsibility, and enhance brand image.
Expect resistance and garner enough evidence to persuade your audience to implement your ideas. You will need to include external research to support your claims.
Week 4’s Oral Presentation should convince Stone Goose Company’s executive management that it needs a social media policy and that you should be given this assignment.
Assignments such as this help you develop business-oriented communication skills and give you the opportunity to practice developing an integrated business strategy for this fictional company. This activity will make the course come alive through the application of the principles from the textbook, course materials, and discussions.
Guidelines
• Persuade a business audience to accept your ideas.
• Create logical, well supported arguments by linking evidence to your claims.
• Develop an organizational structure that is easy to understand and follow.
• Adapt your ideas to a specific audience and anticipate and address their concerns.
• Describe how your recommendation meets the program criteria.

 

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A jewelry firm buys semiprecious stones to make bracelets and rings The supplier quotes Answer

A jewelry firm buys semiprecious stones to make bracelets and rings. The supplier quotes a price of $8 per stone for quantities of 600 stones or more, $9 per stone for orders of 400 to 599 and $10 per stone for lesser quantities. The jewelry firm operates 200 days per year. Usage rate is 25 stones per day and ordering costs are $48

A) If carrying costs are $2 per year for each stone, find order quantity that will minimize total annual cost
B) If annual carrying costs are 30 percent of unit cost, what is the optimal order size?
C) If lead time is six working days, at what point should the company reorder?

If carrying costs are $2 per year for each stone, find order quantity that will minimize total annual cost
Lot size Price/Unit (AC)
1-399 $10 per stone
400-599 $9 Per stone
600 or more $8 Per stone

Operations=200days
d=25Stones/day
D=25*200 = 5000Stones/annum
Co=$48 per order
Ch=$2 per year per stone

Step 1: Calculate EOQ for each acquisition cost starting from the lowest AC.
Step 2: As the EOQ for the lowest acquisition cost is not feasible(EOQ is 490 units while at $8, minimum ordering quantity needs to be 600 stones), Compute the Total Annual cost for the feasible EOQ.(In this case, Find TAC for 490 stones at AC of $9 per stone.
Step 3. Next, Compute the TAC for each of the lower acquisition costs using the minimum allowed order quantity for each cost.
Step 4. The quantity with the TAC is the optimal quantity to be ordered.

B) If annual carrying costs are 30 percent of unit cost, what is the optimal order size?
Step 1: Calculate EOQ for each acquisition cost starting from the lowest AC.
Step 2: As the EOQ for the lowest acquisition cost is not feasible(EOQ is 447 units while at $8, minimum ordering quantity needs to be 600 stones), Compute the Total Annual cost for the feasible EOQ.(In this case, Find TAC for 422 stones at AC of $9 per stone.
Step 3. Next, Compute the TAC for each of the lower acquisition costs using the minimum allowed order quantity for each cost.
Step 4: The quantity with the TAC is the optimal quantity to be ordered.

C) If lead time is six working days, at what point should the company reorder?

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A chemical firm produces sodium bisulfate in 100-pound bags. Demand for this product is 20 tons per day Answer

A chemical firm produces sodium bisulfate in 100-pound bags. Demand for this product is 20 tons per day. The capacity for producing the product is 50 tons per day. Setup costs $100, and storage and handling costs are $5 per ton a year. The firm operates 200 days a year. (Note: 1 ton = 2,000 pounds.)

 

Ans:

Annual Demand 

  

D = 

4000 

Setup cost 

 

S = 

100 

Annual carrying cost per unit 

H = 

5 

Production rate 

 

p = 

50 

Usage rate 

 

u = 

20 

Production days per year

D/Y = 

200 

Economic Run Quantity 

  

  

Qp =

516.00 

Actual Run Quantity 

  

Q = 

516.00 

Increment 

  

  

Q =


 

Number of runs per year 

   

D/Q = 

7.751938 

Cycle time 

 

Q/u = 

25.8 

Run time 

   

Q/p = 

10.32 

Average Inventory 

 

Iave = 

154.8 

Maximum Inventory 

 

Imax = 

309.6 

Annual carrying cost 

   

Iave * H = 

774 

Annual setup cost 

   

(D/Q) * S = 

775.1938 

Total Annual Cost

  

  

TC = 

1549.1938 

 

a.How many bags per run are optimal?

Ans: Economic Run Quantity = 516 tons

Nos. of Optimal Bags = 516 * 2000/100 = 516 * 20 = 10,320 Bags

b.What would the average inventory be for this lot size?

Ans:

Average Inventory = I average = 154.8 Tons = 154.8 * 2000/100 = 3096 Bags

c.Determine the approximate length of a production run, in days.

Ans: Run length = Q /P = 516 /50 = 10.32 Days

d.About how many runs per year would there be?

Ans: Number of runs per year = 7.751938 = Approximately 8

e.How much could the company save annually if the setup cost could be reduced to $25 per run?

 

Ans:

 

Annual Demand 

  

D = 

4000 

Setup cost 

 

S = 

25 

Annual carrying cost per unit 

H = 

5 

Production rate 

 

p = 

50 

Usage rate 

 

u = 

20 

Production days per year

D/Y = 

200 

Economic Run Quantity 

  

  

Qp =

258.00 

Actual Run Quantity 

  

Q = 

258.00 

Increment 

  

  

Q =


 

Number of runs per year 

   

D/Q = 

15.503876 

Cycle time 

 

Q/u = 

12.9 

Run time 

   

Q/p = 

5.16 

Average Inventory 

 

Iave = 

77.4 

Maximum Inventory 

 

Imax = 

154.8 

Annual carrying cost 

   

Iave * H = 

387 

Annual setup cost 

   

(D/Q) * S = 

387.5969 

Total Annual Cost

  

  

TC = 

774.5969 

 

Company save annually if the setup cost could be reduced to $25 per run = $1549.1938 – $774.5969 = $ 774.596

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A stock just paid a dividend of D0 = $1.50. The required rate of return is rs = 10.1%, and the constant growth rate is g = 4.0% Answer

1. (TCO D) A stock just paid a dividend of D0 = $1.50. The required rate of return is rs = 10.1%, and the constant growth rate is g = 4.0%. What is the current stock price? (Points : 10)
$23.11
$23.70
$24.31
$24.93
$25.57

2. (TCO D) If D0 = $2.25, g (which is constant) = 3.5%, and P0 = $50, what is the stock’s expected dividend yield for the coming year? (Points : 10)
4.42%
4.66%
4.89%
5.13%
5.39%

3. (TCO D) Rebello’s preferred stock pays a dividend of $1.00 per quarter, and it sells for $55.00 per share. What is its effective annual (not nominal) rate of return? (Points : 10)
6.62%
6.82%
7.03%
7.25%
7.47%

4. (TCO E) Bankston Corporation forecasts that if all of its existing financial policies are followed, its proposed capital budget would be so large that it would have to issue new common stock. Since new stock has a higher cost than retained earnings, Bankston would like to avoid issuing new stock. Which of the following actions would REDUCE its need to issue new common stock? (Points : 10)
Increase the dividend payout ratio for the upcoming year.
Increase the percentage of debt in the target capital structure.
Increase the proposed capital budget.
Reduce the amount of short-term bank debt in order to increase the current ratio.
Reduce the percentage of debt in the target capital structure.

5. (TCO E) The MacMillen Company has equal amounts of low-risk, average-risk, and high-risk projects. The firm’s overall WACC is 12%. The CFO believes that this is the correct WACC for the company’s average-risk projects, but that a lower rate should be used for lower-risk projects and a higher rate for higher-risk projects. The CEO disagrees, on the grounds that even though projects have different risks, the WACC used to evaluate each project should be the same because the company obtains capital for all projects from the same sources. If the CEO’s position is accepted, what is likely to happen over time? (Points : 10)
The company will take on too many high-risk projects and reject too many low-risk projects.
The company will take on too many low-risk projects and reject too many high-risk projects.
Things will generally even out over time, and, therefore, the firm’s risk should remain constant over time.
The company’s overall WACC should decrease over time because its stock price should be increasing.
The CEO’s recommendation would maximize the firm’s intrinsic value.

6. (TCO D) Butcher Timber Company hired your consulting firm to help them estimate the cost of common equity. The yield on the firm’s bonds is 8.75%, and your firm’s economists believe that the cost of common can be estimated using a risk premium of 3.85% over a firm’s own cost of debt. What is an estimate of the firm’s cost of common from retained earnings? (Points : 10)
12.60%
13.10%
13.63%
14.17%
14.74%

7. (TCO F) Cornell Enterprises is considering a project that has the following cash flow and WACC data. What is the project’s NPV? Note that a project’s expected NPV can be negative, in which case it will be rejected.

WACC: 10.00%
Year 0 1 2 3
———————————————–
Cash flows -$1,050 $450 $460 $470 (Points : 10)
$ 92.37
$ 96.99
$101.84
$106.93
$112.28

8. (TCO F) Maxwell Feed & Seed is considering a project that has the following cash flow data. What is the project’s IRR? Note that a project’s IRR can be less than the WACC (and even negative), in which case it will be rejected.

Year 0 1 2 3 4 5
————————————————————————————-
Cash flows -$9,500 $2,000 $2,025 $2,050 $2,075 $2,100 (Points : 10)
2.08%
2.31%
2.57%
2.82%
3.10%

9. (TCO F) Masulis Inc. is considering a project that has the following cash flow and WACC data. What is the project’s discounted payback?

WACC: 10.00%
Year 0 1 2 3 4
———————————————————
Cash flows -$950 $525 $485 $445 $405 (Points : 10)
1.61 years
1.79 years
1.99 years
2.22 years
2.44 years

10. (TCO H) Temple Corp. is considering a new project whose data are shown below. The equipment that would be used has a three-year tax life, would be depreciated by the straight-line method over its three-year life, and would have a zero salvage value. No new working capital would be required. Revenues and other operating costs are expected to be constant over the project’s three-year life. What is the project’s NPV?
Risk-adjusted WACC
Net investment cost (depreciable basis)
Straight-line deprec. rate
Sales revenues, each year
Operating costs (excl. deprec.), each year
Tax rate 10.0%
$65,000
33.333%
$65,500
$25,000
35.0%
a. $15,740
b. $16,569
c. $17,441
d. $18,359
e. $19,325
Indicate your choice for your answer – a,b,c,d,e first and then show your work/explain your answer so as to earn partial credit in the event you selected the incorrect answer.
Should be in excel
• Problems
o 16-1 Cash Management
o 16-2 Receivables Investment
o 16-3 Cost of Trade Credit
o 16-4 Cost of Trade Credit
o 16-5 Accounts Payable
(16-1)

Cash Management

Williams & Sons last year reported sales of $10 million and an inventory turnover ratio of 2. The company is now adopting a new inventory system. If the new system is able to reduce the firm’s inventory level and increase the firm’s inventory turnover ratio to 5 while maintaining the same level of sales, how much cash will be freed up?
(16-2)

Receivables Investment

Medwig Corporation has a DSO of 17 days. The company averages $3,500 in credit sales each day. What is the company’s average accounts receivable?
(16-3)

Cost of Trade Credit

What is the nominal and effective cost of trade credit under the credit terms of 3/15, net 30?
(16-4)

Cost of Trade Credit

A large retailer obtains merchandise under the credit terms of 1/15, net 45, but routinely takes 60 days to pay its bills. (Because the retailer is an important customer, suppliers allow the firm to stretch its credit terms.) What is the retailer’s effective cost of trade credit?
(16-5)

Accounts Payable

A chain of appliance stores, APP Corporation, purchases inventory with a net price of $500,000 each day. The company purchases the inventory under the credit terms of 2/15, net 40. APP always takes the discount but takes the full 15 days to pay its bills. What is the average accounts payable for APP?

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PROJ 592 You are the project manager for a new high-rise office building. You are working on estimating the exterior landscaping Answer

PROJ 592 Proj Cost and Schedule Control Week 8 Final Exam Complete A+ Set 1 set 2 and set 3 Answer

 

Proj 592 Week 8 Final Exam Answer

SET 1

Page: | 1 2 3 |
Question 1. | Question : | (TCO B) Estimating Procedures
(a) You are the project manager for a new high-rise office building. You are working on estimating the exterior landscaping for the new development. The landscaping requires the use of a special landscape stone. Based on recent experience, the most likely price for the material is $120.00/ton. However, the price for this stone is volatile, and the price fluctuates over time based on market conditions and material availability. The most optimistic price estimate is $100.00/ton, and the most pessimistic estimate is $200.00/ton. What is the expected price of the material?
(b) In addition to price fluctuations, you are also uncertain of how much of the material will be required for the project. Scope changes and site conditions will affect the amount of material actually needed. The most likely amount required is 36 tons. However, as little as 32 tons or as much as 44 tons might be required.What is the expected amount of the material needed for the project? Round to two decimal places.
(c) Using the estimates from (a) & (b) what is the expected cost for the material over the life of the project using the COMPLEX method?

Question 2. | Question : | (TCO B) Contingency Allowance:
You are a project manager for the development of Motorola’s new 4G, HD, Touch Screen Cell Phone which is supposed to take the cell phone industry by storm. Listed below are the initial cost estimates for the materials and labor for one of the phones:
ITEM | COST ESTIMATE | TYPE OF ESTIMATE |
Case | $15.00 | Order of Magnitude |
Handset | $12.00 | Definitive |
Labor | $2.00 | Definitive |
Speaker | $2.50 | Budget |
Mouthpiece | $5.50 | Budget |
Antenna | $1.70 | Definitive |
Keypad | $3.00 | Order of Magnitude |
Circuit boards (handset) | $6.50 | Budget |
Circuit boards (base unit) | $8.50 | Definitive |
Battery | $1.20 | Order of Magnitude |
Charger | $16.00 | Order of Magnitude |
Total cost | $73.90 | NA |
The estimating department currently defines estimate accuracy as follows:
Order of Magnitude | -25%, +75% |
Budget | -10%, +25% |
Definitive | -5%, +10% |

(a) What contingency cost budget do you recommend for the product?
(b) The target retail price for the new telephone is $165.00 per unit. The markup demanded by retailers is 50%. Based on cost factors, write a brief rationale for acceptance or rejection of the project, including any recommendations you have regarding the cost estimates.

Page: | 1 2 3 |

Question 3. | Question : | (TCO C) Work Breakdown Structure WBS
Eurocash has decided to develop a mutual fund comprised almost entirely of East European companies with a high growth potential. The process of developing a new mutual fund begins with concept development, which includes establishing a clear definition of the project’s objectives that is agreed upon by senior management and developing a marketing strategy.
* A business analysis is then performed that includes assessments of market feasibility, internal feasibility (budgetary resource requirements), and regulatory feasibility. * If the proposed fund passes the business analysis, the fund design is developed. * The design process consists of product design, service design, internal review and authorization, and SEC registration (assuming a U.S. market). * As the design process nears completion, generally recognized as a positive preliminary review by the SEC, employee training is performed. * After completion of the employee training and final regulatory approval, the product is launched, and post-launch reviews are conducted at predetermined intervals.

Prepare a work breakdown structure (WBS) for this project with activities corresponding to a two level task and sub-task hierarchy. Provide columns showing the WBS code and activities. Number and indent the WBS codes so that the level of each activity is clearly identified.

Question 4. | Question : | (TCO A) Budgeting processes and techniques
A company builds custom yachts for the high-end boating market. They develop and build these custom designs as a single individualized unit. The orders are generated by the marketing and sales department with help from the owners, who participate in the management of the company. Each new order is assigned to a project team which starts by making an estimate to the customer before a contract is signed. The project teams have a great deal of experience in these projects. As would be expected, the owners are hands-on and have opinions on the estimates. The marketing folks also provide suggestions on what the customer is willing to pay.
What are some processes and techniques that you would suggest to make the budgeting process work well? Start with general but also provide some specifics as relate to creating detailed project budgets. Be sure to justify why you think your recommendations will work.

Page: | 1 2 3 |
Question 1. | Question : | (TCO C) Schedule Crashing
Using the network below and the additional information provided, find:
(a) The crash cost per day per activity.
(b) Which activities should be crashed to meet a project deadline of 13 days at minimum cost? State the number of days you will crash each activity.
(c) What is the additional cost to crash the project?
Critical path = B-C-D = 14
Activity | Normal time | Normal total cost | Crash time | Crash total cost |
A | 5 | 300 | 3 | 380 |
B | 3 | 250 | 1 | 330 |
C | 6 | 400 | 4 | 700 |
D | 5 | 150 | 3 | 250 |

Question 2. | Question : | (TCO E) Responsibility Assignment Matrix
Projects often cross many functional boundaries with team members reporting to different functional managers. This cross functional aspect can create problems with roles and responsibilities. You decide to use a Responsibility Assignment Matrix (RAM) to help with this situation. Your manager is wondering why you are spending your time on this tool when you already have resources assigned to tasks in your schedule.
(a) Why is the RAM such an effective tool for Project Managers?
(b) What are some of the typical responsibilities assigned on a RAM? |

Question 3. | Question : | (TCO E) Resource Allocation/Leveling
The following data were obtained from a project to expand a school: Activity | Duration | Predecessors | Resources / cost |
A | 2 Weeks | — | 2 Excavators/$800 day each |
B | 3 Weeks | — | 2 Dump Trucks/$600 day each |
C | 2 Weeks | B | 2 Concrete Mixers/$250 day each |
D | 3 Weeks | A, C | 2 Cranes/$2,000 day each |
E | 2 Weeks | B | 1 High-lift/$500 day each |
F | 1 Weeks | B | 2 Excavators/$800 day each |
G | 3 Weeks | F | 2 Cranes/$2,000 day each |
The contractor has access to the listed quantity of machines of each type available at the listed cost ‘each’. The operations cannot be split. Additional equipment can be rented at a 50% cost premium if needed.
(a) Identify any resource conflicts in the above project. State the activities involved, the time frame of the conflict(s), the resources in conflict and the quantity of resource involved.
(b) What is the least cost method of resolving the conflict(s), assuming the project duration must not be extended? What additional cost, if any, will be incurred?

Page: | 1 2 3 |
Question 1. | Question : | (TCO G) Estimate At Completion forecast (EAC)
A project has been estimated to take eight weeks and cost $65,000. The critical path is A – D. Cost and earned value data are provided below:
| | EV | PV | | | AC | | | | Budget | BCWP | – BCWS | SV | SPI | – ACWP | CV | CPI |
A | $8,500 | $8,500 | $8,500 | $ – | 1.00 | $7,500 | $1,000 | 1.13 |
B | $15,000 | $15,000 | $15,000 | $ – | 1.00 | $13,000 | $2,000 | 1.15 |
C | $6,800 | $2,530 | $2,700 | ($170) | 0.94 | $4,000 | ($1,470) | 0.63 |
D | $18,000 | $900 | $3,000 | ($2,100) | 0.30 | $1,200 | ($300) | 0.75 |
E | $16,000 | $0 | $0 | $ – | | $0 | $ – | |
Project: | $64,300 | 26,930 | 29,200 | ($2,270) | 0.92 | $25,700 | $730 | 1.05 |
(i) Calculate the Estimate At Completion (EAC) considering future performance will be back on schedule and budget.
(ii) Calculate EAC considering that the project will continue to perform as it has to date.
(iii) Using either of these two numbers discuss the status of the project and if the project manager needs to take corrective actions. Justify your comments. |

Question 2. | Question : | (TCO F) Earned Value
The following data were obtained from a project to design a new software package: Activity | Duration | Predecessors | Budgeted Cost |
A | 3 Days | — | $8,320 |
B | 6 Days | — | $11,740 |
C | 4 Days | A | $11,550 |

D | 2 Days | C, B | $7,850 |
E | 3 Days | A | $10,750 |
F | 2 Days | D, E | $8,600 |
At the end of day 4, the status of the project is as follows: Activity | % Complete | Actual Cost |
A | 100% | $7,200 |
B | 80% | $10,370 |
C | 25% | $8,250 |
D | 0% | $0 |
E | 80% | $8,560 |
F | 0% | $0 |
(a) Calculate the Cost and Schedule Variances and Indexes (CV, SV, CPI, SPI) for tasks A, B, C, D, and E.
(b) Write a brief analysis of the status of the project at this time, including task level, project level, and critical path. |

SET 2

Final Exam Page 1
1. (TCO B) Estimating Procedures
(a) You are the project manager for a new high rise office building. You are working on estimating the exterior landscaping for the new development. The landscaping requires the use of a special landscape stone. Based on recent experience the most likely price for the material is $120.00/ton. However, the price for this stone is volatile, and the price fluctuates over time based on market conditions and material availability. The most optimistic price estimate is $80.00/ton, and the most pessimistic estimate is $180.00/ton. (Note there are 3 data points in for this estimate.)What is the expected price of the material?
(b) In addition to price fluctuations, you are also uncertain of how much of the material will be required for the project. Scope changes and site conditions will affect the amount of material actually needed. The most likely amount required is 36 tons. However, as little as 28 tons, and as much as 56 tons might be required.What is the expected amount of the material needed for the project?
(c) Using the estimates from (a) & (b), what is the expected cost for the material over the life of the project using the COMPLEX method?(Points : 30)

2. (TCO B) Contingency Allowance:
You are a project manager for the development of Motorola’s new 4G, HD, Touch Screen Cell Phone which is supposed to take the cell phone industry by storm. Listed below are the initial cost estimates for the materials and labor for one of the phones:
ITEM | COST
ESTIMATE | TYPE OF ESTIMATE |
Case | $10.00 | Order of Magnitude |
Handset | $12.00 | Definitive |
Labor | $2.00 | Definitive |
Speaker | $2.50 | Budget |
Mouthpiece | $5.50 | Budget |
Antenna | $1.70 | Definitive |
Keypad | $3.00 | Order of Magnitude |
Circuit boards (handset) | $6.50 | Budget |
Circuit boards (base unit) | $8.50 | Definitive |
Battery | $1.20 | Order of Magnitude |
Charger | $16.00 | Order of Magnitude |
Total | $68.90 | NA |
The estimating department currently defines estimate accuracy as follows:
Order of Magnitude | -25%, +75% |
Budget | -10%, +25% |
Definitive | -5%, +10% |
(a) What contingency cost budget do you recommend for the product?
(b) The target retail price for the new telephone is $165.00 per unit. The markup demanded by retailers is 75%. Based on cost factors, write a brief rationale for acceptance or rejection of the project, including any recommendations you have regarding the cost estimates. (Points : 30)

3. (TCO C) Work Breakdown Structure WBS
Eurocash has decided to develop a mutual fund comprised almost entirely of East European companies with a high growth potential. The process of developing a new mutual fund begins with concept development, which includes establishing a clear definition of the project’s objectives that is agreed upon by senior management and developing a marketing strategy.
* A business analysis is then performed that includes assessments of market feasibility, internal feasibility (budgetary resource requirements), and regulatory feasibility. * If the proposed fund passes the business analysis, the fund design is developed. * The design process consists of product design, service design, internal review and authorization, and SEC registration (assuming a U.S. market). * As the design process nears completion, generally recognized as a positive preliminary review by the SEC, employee training is performed. * After completion of the employee training and final regulatory approval, the product is launched, and post-launch reviews are conducted at predetermined intervals.
Prepare a work breakdown structure (WBS) for this project with activities corresponding to a two level task and sub-task hierarchy. Provide columns showing the WBS code and activities. Number and indent the WBS codes so that the level of each activity is clearly identified. (Points : 30)

4. (TCO A) Budgeting processes and techniques
A company builds custom yachts for the high-end boating market. They develop and build these custom designs as a single individualized unit. The orders are generated by the marketing and sales department with help from the owners, who participate in the management of the company. Each new order is assigned to a project team which starts by making an estimate to the customer before a contract is signed. The project teams have a great deal of experience in these projects.
As would be expected, the owners are hands-on and have opinions on the estimates. The marketing folks also provide suggestions on what the customer is willing to pay.
What are some processes and techniques that you would suggest to make the budgeting process work well? Start with general but also provide some specifics as relate to creating detailed project budgets. Be sure to justify why you think your recommendations will work. (Points : 30)

Page: 1 2 3 |
1. (TCO C) Schedule Crashing
Using the network below and the additional information provided, find:
(a) The crash cost per day per activity.
(b) Which activities should be crashed to meet a project deadline of 13 days at minimum cost? State the number of days you will crash each activity.
(c) What is the additional cost to crash the project?
Critical path = B-C-D = 14
Activity | Normal time | Normal total cost | Crash time | Crash total cost |
A | 5 | 300 | 3 | 380 |
B | 3 | 250 | 1 | 330 |
C | 6 | 400 | 4 | 700 |
D | 5 | 150 | 3 | 250 |
(Points : 30)

2. (TCO E) Responsibility Allocation Matrix
Projects often cross many functional boundaries with team members reporting to different functional managers. This cross functional aspect can create problems with roles and responsibilities. You decide to use a Responsibility Assignment Matrix (RAM) to help with this situation. Your manager is wondering why you are spending your time on this tool when you already have resources assigned to tasks in your schedule.
(a) Why is the RAM such an effective tool for Project Managers?
(b) What are some of the typical responsibilities assigned on a RAM? (Points : 30)

3. (TCO E) Resource Allocation/Leveling
The following data were obtained from a project to design a new software package: Activity | Duration | Predecessors | Personnel / Cost |
A | 3 days | — | 1 Systems Analyst/$260 day |
B | 6 days | — | 3 Programmers/$200 day each |
C | 4 days | A | 3 Programmers/$200 day each |
D | 2 days | C | 2 Hardware specialists/$230 day each |
E | 3 days | A | 1 Systems Analyst/$260 day |
F | 2 days | D, E | 1 Test Engineer/$300 day |
Personnel Available | Quantity |
Systems Analysts | 1 |
Programmers | 3 |
Hardware Specialists | 2 |
Test Engineers | 2 |
The software manufacturer has only the above personnel available for the project. Additional personnel can be hired from an agency at an 80% cost premium if needed.
(a) Identify any resource conflicts in the above project. State the activities involved, the time frame of the conflict(s), the personnel in conflict, and the number of people involved.
(b) Note that operations can be split if required: what is the least cost method of resolving the conflict(s), assuming the project duration must not be extended? What additional cost, if any, will be incurred? (Points : 30)

Page: 1 2 3
Page 3
1. (TCO G) Estimate At Completion forecast (EAC)
A project has been estimated to take eight weeks and cost $65,000. The critical path is A – D. Cost and earned value data are provided below: | | EV | PV | | | AC | | |
| Budget | BCWP | – BCWS | SV | SPI | – ACWP | CV | CPI |
A | $8,500 | $8,500 | $8,500 | $ – | 1.00 | $7,000 | $1,500 | 1.21 |
B | $15,000 | $15,000 | $15,000 | $ – | 1.00 | $13,000 | $2,000 | 1.15 |
C | $6,800 | $2,530 | $2,700 | ($170) | 0.94 | $4,000 | ($1,470) | 0.63 |
D | $18,000 | $900 | $3,000 | ($2,100) | 0.30 | $1,200 | ($300) | 0.75 |
E | $16,000 | $0 | $0 | $ – | | $0 | $ – | |
Project: | $65,000 | 26,930 | 29,200 | ($2,270) | 0.92 | $25,200 | $ 730 | 1.07 |
(i) Calculate the Estimate At Completion (EAC) considering future performance will be back on schedule and budget.
(ii) Calculate EAC considering that the project will continue to perform as it has to date.
(iii) Using either of these two numbers discuss the status of the project and if the project manager needs to take corrective actions. Justify your comments.(Points : 30)

2. (TCO D) PMIS and cost accounting
An Earned Value system can be a very effective way to monitor projects. However, Earned Value Analysis requires a Project Cost Accounting System (PCAS).
(a) What are some of the benefits of PCAS?
(b) What are some of the software solutions for establishing a PCAS? (Points : 30)

3. (TCO F) Earned Value
The following data were obtained from a project to design a new software package: Activity | Duration | Predecessors | Budgeted Cost |
A | 3 Days | — | $8,320 |
B | 6 Days | — | $11,740 |
C | 4 Days | A | $11,550 |
D | 2 Days | C, B | $7,850 |
E | 3 Days | A | $10,750 |
F | 2 Days | D, E | $8,600 |
At the end of day 5, the status of the project is as follows: Activity | % Complete | Actual Cost |
A | 100% | $7,200 |
B | 50% | $6,370 |
C | 25% | $8,250 |
D | 0% | $0 |
E | 80% | $8,560 |
F | 0% | $0 |
(a) Calculate the Cost and Schedule Variances and Indexes (CV, SV, CPI, SPI) for tasks A, B, C, D, and E.
(b) Write a brief analysis of the status of the project at this time, including task level, project level, and critical path.(Points : 30)

Set 3

Page 1

Question 1. 1. (TCO A) Work Breakdown Structure (WBS)

A consumer electronics firm is planning an expansion into Milwaukee. Generally, the firm prefers to remodel large existing tenant spaces to suit its needs. After a site is selected from several alternatives, the corporate architect develops plans by reviewing the suitability of the existing structure and utilities. A modification and demolition plan is then developed. Interior finish plans are then developed from corporate standards and adjusted to each site.

• Building permits are handled by the general contractor (GC). The firm uses the GC for all of its construction in a region. The GC hires local subcontractors and provides on-site construction supervision.
• As construction begins, the firm also begins to assemble a new management team from existing management staff, making an attempt to use only staff that has an interest in relocating. Sales staff is hired locally.
• When construction is approximately 6 weeks from completion, inventory is ordered.

Prepare a WBS for this project with activities corresponding to a two-level task and subtask hierarchy. Provide columns showing the WBS code and activities. Number and indent the WBS codes so that the level of each activity is clearly identified. (Points : 25)

Question 2. 2. (TCO E) Using the network below and the additional information provided, find answers to the following questions.

(a) What is the crash cost per day per activity?
(b) Which activities should be crashed to meet a project deadline of 13 days at minimum cost? State the number of days you will crash each activity.
(c) What is the additional cost to crash the project?

Critical path = B-C-D = 15

Activity Normal time Normal total cost Crash time Crash total cost
A 4 $300 3 $360
B 3 $250 1 $330
C 7 $400 4 $550
D 5 $150 3 $250
(Points : 25)

Question 3. 3. (TCO E) There are many stakeholders and participants in projects, and they often get confused as to who is doing what. You decide to use an RACI to help with this situation. Your manager is wondering why you are spending your time on this tool when you already have resources assigned to tasks in your schedule.

(a) What do you tell management to justify your time creating the RACI?
(b) What are the best ways to create the RACI? (Points : 25)

Page 2

Question 1. 1. (TCO F) Earned Value

The following data were obtained from a project to design a new software package.
Activity Duration Predecessors Budgeted Cost
A 3 days — $8,320
B 6 days — $11,740
C 4 days A $11,550
D 2 days C and B $7,850
E 3 days A $10,750
F 2 days D and E $8,600

At the end of Day 5, the status of the project is as follows.
Activity % Complete Actual Cost
A 100% $7,200
B 50% $5,370
C 25% $8,250
D 0% $0
E 70% $8,560
F 0% $0

(a) Calculate the cost and schedule variances and indexes (CV, SV, CPI, SPI) for Tasks A, B, C, D, and E.

(b) Write a brief analysis of the status of the project at this time, including task level, project level, and critical path. (Points : 25)

Question 2. 2. (TCO C)
(a) You are the project manager for a new high-rise office building. You are working on estimating the exterior landscaping for the new development. The landscaping requires the use of a special landscape stone. Based on recent experience, the most likely price for the material is $120.00/ton. However, the price for this stone is volatile, and the price fluctuates over time based on market conditions and material availability. The most optimistic price estimate is $80.00/ton, and the most pessimistic estimate is $180.00/ton.
What is the expected price of the material? Round to two decimal places.

(b) In addition to price fluctuations, you are also uncertain of how much of the material will be required for the project. Scope changes and site conditions will affect the amount of material actually needed. The most likely amount required is 36 tons. However, as little as 28 tons or as much as 56 tons might be required.
What is the expected amount of the material needed for the project?

(c) Using the estimates from (a) and (b), what is the expected cost for the material over the life of the project? (Points : 25)

Question 3. 3. (TCO E) Resource Allocation and Leveling

The following data were obtained from an in-house MIS project.
Activity Duration Predecessors Personnel/Cost
A 3 days — One systems snalyst/$260 day
B 6 days — Two programmers/$200 day each
C 3 days A Two programmers/$200 day each
D 3 days B Two hardware specialists/$280 day each
E 3 days B One hardware specialist/$280 day
F 2 days C and D One test engineer/$300 day

Personnel Available Quantity
Systems analysts 1
Programmers 4
Hardware specialists 2
Test engineers 1

The software manufacturer has only the above personnel available for the project. Additional personnel can be hired from an agency at a 90% cost premium if needed.

(a) Identify any resource conflicts in the above project. State the activities involved, the time frame of the conflict(s), the personnel in conflict, and the number of people involved.

(b) Note that operations cannot be split. What is the least-cost method of resolving the conflict(s), assuming the project duration must not be extended? What additional cost, if any, will be incurred? (Points : 25)

Page 3

Question 1. 1. (TCO D) Change control is critical to a successful project. Describe the roles and responsibilities of two key components of a good change control process: the change control board and the project manager. (Points : 25)

Question 2. 2. (TCO G) Your project is progressing well in your estimation. Your team has collected the following data. From these data, calculate the project’s ETC. Assume spending will continue at the same rate.
Activity A is 60% complete at a cost so far of $100,000. It was estimated to cost $200,000 when finished. It is at the end of Week 3 of 5. Activity B is 85% complete at a cost so far of $50,000. It was estimated to cost $80,000 when finished. It is at the end of Week 4 of 5. Activity C is complete at a cost so far of $110,000. It was estimated to cost $100,000 when finished. (Points : 25)

Question 3. 3. (TCO B) You are the project manager for three different projects.

Project A: This project is behind schedule by 12 weeks. It was to have been completed in 3 months. The sponsor has additional funds to help complete the project on time if needed but does not want to increase risk to the project.
Project B: This project is scheduled to take 27 weeks to complete. You are in the planning stage of the project. You need to reduce the schedule for this project by 8 weeks. This project has a number of predecessors that were created by the project team’s preference. The sponsor insists on having all the work done on time without unduly increasing risk or costs to the project.
Project C: This project is in the execution stage of the project. It is behind schedule by 6 weeks; it was scheduled to be completed in 10 weeks. The sponsor is desperate to accomplish something on this project. The budget is limited to the original amount, and all soft predecessors have already been removed.

For each of the projects above, choose an appropriate schedule compression technique. Explain your choice. (Points : 25)

 

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Illustrate with your own examples the two (2) general uses of mathematics in modern economics: deriving and stating economic theories and testing economic hypotheses Answer

Mathematical Economics.” Please respond to the following:

  • Illustrate with your own examples the two (2) general uses of mathematics in modern economics: deriving and stating economic theories and testing economic hypotheses.
  • Using only three (3) sentences, summarize the contributions of mathematical economics.

Actually, I think the biggest contribution of mathematical economics is that like other sciences it has made the language of economic universal. No matter what language one speaks, on can read, communicate and engage in dialogue with economist all over the world an share economic thinking.

Illustrate with your own examples the two (2) general uses of mathematics in modern economics: deriving and stating economic theories and testing economic hypotheses.

Ans: Two general uses of mathematics in modern economics are:

– Demand supply curve (slope of the curve) and intersection of the same to derive the equilibrium output and price level for the Aggregate market economy

– Demand – Price elasticity – Change in the quantity demanded of goods / Change in the price

Using only three (3) sentences, summarize the contributions of mathematical economics.

Ans: Mathematical economics helps in understanding both the microeconomics and Macroeconomics variables and the impact of the same on GDP, inflation, unemployment and general economic conditions of the nation..

  1. Mathematics in economics would be used to assess the risk of an investment and/or a future business plan a company is planning. It can answer the questions whether of not the marginal benefit outweighs the marginal cost.
  2. Math would also be used to set up a profit maximazation graph. The advantage would be in seeing everything in front of you. a mathematic graph in economics is akin to a canvas, full of symbols and one letter notations that can, supposedly, make a calculation easier to understand.

Calculus is used to study utility, growth and profit curves. Statistics is used to determine the probability of an event happening in the market. Mathematical economics gives us the ability to measure and manage in a universal language. Some of the applications of the the Mathematical Economics is found in the Game theory and Equilibrium theory to solve real-world problems. In the economic world, the production quantity and output are governed by things like market prices. consumer prefernces, income level of people etc. These decisions are invariably arrived at by using some sort of mathematical approach in economics. Elasticity and inelasticity of demand and suppy are important concepts and are best understood by using the mathematics formula and we arrive at if elasticity is less than 1 then the demand/supply is inelastic and if it is more than 1 then demand/supply is elastic.

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