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NEW QUESTION # 128
As the leas cost engineer for the XYZ Services Company, you have been requested to provide pertinent for an equipment rental decision. The unit price of the food stuffs varies, but an average unit selling process has been determined to be $0.50 cents and the average unit acquisition cost is $0.40 cents.
The following revenue and expense relationships are predicted:
Marketing has determined that XY2 can safely increase their per unit selling price to SO.55. The new break even amount for sales (in units) based on the new contribution margin is:
Answer: B
Explanation:
With the increase in the per unit selling price to $0.55, the new contribution margin per unit becomes:
New Contribution Margin=0.55-0.40=0.15text{New Contribution Margin} = 0.55 - 0.40 = 0.15New Contribution Margin=0.55-0.40=0.15 The break-even point is then recalculated as:
Break-even units=6,0000.15=40,000 unitstext{Break-even units} = frac{6,000}{0.15} = 40,000 text{ units}Break-even units=0.156,000โ=40,000 units Thus, based on the new contribution margin, the new break-even amount for sales in units is 40,000 units.
NEW QUESTION # 129
An agricultural corporation that paid 53% in income tax wanted to build a grain elevator designed to last twenty-five (25) years at a cost of $80,000 with no salvage value. Annual income generated would be $22,500 and annual expenditures were to be $12,000.
Answer the question using a straight line depreciation and a 10% interest rate.
Which of the following interest rates disregards the effects of compounding periods that occur more frequent than annually?
Answer: D
Explanation:
The Nominal interest rate is the rate of interest before adjusting for compounding within the year. It disregards the effects of compounding periods that occur more frequently than annually. For instance, a nominal rate of 12% compounded monthly would still be referred to as 12%, without taking into account the fact that the effective annual rate would be higher due to monthly compounding. The other options, such as continuous compounding, simple interest, and minimum attractive rate of return (MARR), do account for compounding or are specific types of interest. Therefore, the correct answer is D. Nominal interest rate.
NEW QUESTION # 130
Which of the lol owing comparisons is commonly used in forensics schedule analysis (FSA)?
Answer: C
Explanation:
Forensic Schedule Analysis (FSA) often compares the planned progress (as-planned) with the actual progress (as-built). This method helps identify variances and delays by analyzing how the actual construction compares with what was originally planned. This comparison is crucial in understanding deviations from the schedule and assessing the impact of delays.
NEW QUESTION # 131
A major theme park is expanding the existing facility over a five-year period. The design phase will be completed one year after the contract is awarded. Major engineering drawings will be finalized two years after the design contract is awarded and construction will begin three years after the award of the design contract. New, unique ride technology will be used and an estimate will need to be developed to identify these costs that have no historical data.
Which of the following is least likely to improve a large earthmoving contractor's productivity?
Answer: A
NEW QUESTION # 132
After collecting the control information on a light rail project within an original budget of 200.000 work hours, the construction contractor is ready for their monthly progress meeting with the client.
A total of 100.000 work hours have boon scheduled to date. with 105.000 work hours earned, and 110.000 work hours paid. The stated progress by the contractor Is 60%.
What is the cost performance index (CPI)?
Answer: A
Explanation:
The Cost Performance Index (CPI) is a key metric in Earned Value Management (EVM) that measures the cost efficiency of the work performed on a project.
Key Points:
CPI Formula:
CPI = BCWP / ACWP
BCWP (Budgeted Cost of Work Performed) = 105,000 work hours
ACWP (Actual Cost of Work Performed) = 110,000 work hours
Calculation:
CPI = 105,000 / 110,000 = 0.95
Interpretation:
A CPI of less than 1 indicates that the project is over budget, as the actual cost incurred is higher than the value of the work performed.
Conclusion: The correct answer is A. BCWP/ACWP = 105,000/110,000 = 0.95 because this calculation accurately reflects the cost efficiency of the project.
NEW QUESTION # 133
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