Reference no: EM13918791
The Porsche Shop, founded in 1985 by Dale Jensen, specializes in the restoration of vin- tage Porsche automobiles. One of Jensen's regular customers asked him to prepare an estimate for the restoration of a 1964 model 356SC Porsche. To estimate the time and cost to perform such a restoration, Jensen broke the restoration process into four separate ac- tivities: disassembly and initial preparation work (A), body restoration (B), engine restora- tion (C), and final assembly (D). Once activity A has been completed, activities B and C can be performed independently of each other; however, activity D can be started only if both activities B and C have been completed. Based on his inspection of the car, Jensen believes that the following time estimates (in days) are applicable:
|
Activity
A
|
Optimistic
3
|
Most Probable
4
|
Pessimistic
8
|
|
B
|
5
|
8
|
11
|
|
C
|
2
|
4
|
6
|
|
D
|
4
|
5
|
12
|
Jensen estimates that the parts needed to restore the body will cost $3000 and that the parts needed to restore the engine will cost $5000. His current labor costs are $400 a day.
a. Develop a project network.
b. What is the expected project completion time?
c. Jensen's business philosophy is based on making decisions using a best- and worst- case scenario. Develop cost estimates for completing the restoration based on both a best- and worst-case analysis. Assume that the total restoration cost is the sum of the labor cost plus the material cost.
d. If Jensen obtains the job with a bid that is based on the costs associated with an ex- pected completion time, what is the probability that he will lose money on the job?
e. If Jensen obtains the job based on a bid of $16,800, what is the probability that he will lose money on the job?
|
What is spps and how is design applied to process
: What is SPPS? How is design applied to process? Do you think that design is applicable to your organization with current/future opportunities? Explain your answer.
|
|
Cost of goods sold
: Presented below is the trial balance of Scott Butler Corporation at December 31, 2014. Debit Credit Cash $ 199,630 Sales $ 8,103,580 Debt Investments (trading) (cost, $145,000) 156,580 Cost of Goods Sold 4,803,580 Debt Investments (long-term) 301,630..
|
|
Anticipated cash inflow for the month
: The company's past experience indicates that 70% of the accounts receivable are collected in the month of sale, 20% in the month following the sale, and 8% in the second month following the sale. The anticipated cash inflow for the month of March ..
|
|
Prepare a balance sheet and a statement
: Write an accounting equation and record the effects of each accounting event under the appropriate general ledger account headings.
|
|
Develop cost estimates for completing the restoration
: Develop cost estimates for completing the restoration based on both a best- and worst-case analysis. Assume that the total restoration cost is the sum of the labor cost plus the material cost.
|
|
Common stock as a long term investment
: Common stock as a long term investment. Steig. Corporation uses the equity method of accounting for this investment.
|
|
Identify the four basic financial statements
: Identify the four basic financial statements. Describe the purpose of each of the four financial statements. Discuss how the financial statements would be useful to internal users, such as to managers and employees. Discuss how the financial statemen..
|
|
Report for the insurance company
: Suzuki is fully insured for fire losses but must prepare a report for the insurance company.Compute the gross profit rate for November.
|
|
European distribution center site
: American International Automotive Industries (AIAI) manufactures auto and truck engine, transmission, and chassis parts for manufacturers and repair companies in the United States, South America, Canada, Mexico, Asia and Europe. The company transp..
|