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Question :
(a) A project must have a useful purpose. Therefore, as a project is evaluated, the team should determine the requirements of the local community and industry. These requirements are often categorized as needs, desires and luxuries. Differentiate these three categories.
(b) During the beginning phases of a project, the project manager often prepares initial costs needed to complete a given item within the project and estimates for the time. Costs are normally subdivided in a variety of categories. Briefly describe the following categories:
(i) Direct Costs (ii) Variable Costs (iii) Fixed Costs (iv) Overhead Costs and Rates (v) Indirect Costs
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(a) The BEQ is 200 customers per month, i.e. $3,000 / ($20 - $5) (b) The margin of safety is 300 customers, i.e. 500 - 200 (c) Graph (d) New break-even is 334 customers, i
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