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Project budget - £170,000 Labour and Material costs - £153,000 Proposed Profit -

ID: 3196683 • Letter: P

Question

Project budget - £170,000

Labour and Material costs - £153,000
Proposed Profit - £17,000

Month and Year - June 12th 2004

Activity

Duration (Weeks)

A2

7

A3

10

A4

8

B3

4

B5

2

C6

3

D6

5

E6

2

F7

1

Status Update: Aug 27th 2004

Activity

% Complete

Actual Costs

Time Remaining (weeks)

A2

100

£23,500

0

A3

60

£19,200

4

A4

87.5

37,500

1

B3

50

8,000

2

B5

50

5,500

1

Work is linear with time and nonlinear with cost

Project planning budget

Identify the true status of the project along with the expected profit at completion.

Activity

Duration (Weeks)

A2

7

A3

10

A4

8

B3

4

B5

2

C6

3

D6

5

E6

2

F7

1

Activit 10 13 14 15 1 2000 3000 5000 4 12 A2 A3 A4 B3 B5 C6 D6 E6 F7 2000 3000 5000 4000 4000 4000 3000 4000 3000 3000 3000 3000 40000 40000 4000 4000 2000 1000 3000 6000 2000 1000 6000 4000 4000 4000 6000 5000 2000 4000 2000 3000 3000 3000 3000 3000 4000 2000 3000

Explanation / Answer

Total spending on project till Aug 27th 2004 = (100% of A2 + 60% of A3 + 87.5% of A4 + 50% of B3 + 50% of B5)

= 23500+19200+37500+8000+5500 = 93700

total future spending on future after August 24th 2004 = (40% of A3 + 12.5% of A4 + 50% of B3 + 50% of B5 + 100% of C6 + 100% of D6 + 100% of E6 + 100% of F7)

= 9000 + 1000 + 9000 + 6000 + 8000 + 17000 + 4000 + 3000 = 57000

So, total expected spending on project = (total spending till Aug 24th 2004 + future expected spending after Aug 24th 2004)

= 93700 + 57000 = 150700

so, total expected profit on completion = 170000 - 150700 = 19300

Now total time to completion of project = 7+10+8+4+2+3+5+2+1 = 42 weeks

amount of work completed in time = 7+6+7+2+1 = 23 weeks

so,amount of work completed according to time taken = 23/42 = 54.76 %