Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. abc as an industry has client x. fort his particul

ABC as an industry has client X. Fort his particular project, Client X is offering...

70.2K

Verified Solution

Question

Accounting

ABC as an industry has client X. Fort his particular project, Client X is offering ABC two types of contracts. Contract A will require ABC to finish the project in 22 days for total revenue worth $920,000, however, every day late of the project incurs a $15000 fine. Contract B has total revenue worth $905000 and requires the project to be finished in 23 days with a $20000 penalty for every day late of the project. The associated cost per activity is shown below along with the precedence diagram of the project. Determine the contract that ABC will choose and the target completion time of the project that will yield the most significant profit. Also, draw the final Precedence diagram that the company will use, label the activities with their corresponding duration and state the critical path. The cost given is in thousands of dollars.

image

image

Activity 1-2 1-3 2-4 3-4 3-5 3-6 4-7 4-8 5-7 6-7 7-10 8-9 8-10 9-10 Normal Duration 4 3 5 7 3 6 8 4 9 7 57 6 3 Cost 40 55 65 40 60 35 70 50 20 40 35 50 40 20 Crashed Duration Cost 2 80 72 97 70 78 92 90 68 70 120 45 70 75 25 235 2 3 7 3 7 5 4 5 4 2 1 2 3 5 6 8 7 9 10

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students