Problem 2: For the following data, find: (a) The profit expected if the project is finished in 26 days. (b) The maximum profit obtainable and the project duration associated with it, i.e., the optimum duration. Project Duration Minimum Direct Cost (S) 20 41,000 22 40,600 25 39,900 27 39,200 29 38,400 31 37,600 33 36,900 34 36,500 36 36,250 Bid = $48,000 Setup cost $1,000 Indirect cost = $250/day

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Problem 2:
For the following data, find:
(a) The profit expected if the project is finished in 26 days.
(b) The maximum profit obtainable and the project duration associated with it, i.e., the
optimum duration.
Project Duration
Minimum Direct Cost (S)
20
41,000
22
40,600
25
39,900
27
39,200
29
38,400
31
37,600
33
36,900
34
36,500
36
36,250
Bid = $48,000
Setup cost $1,000
Indirect cost = $250/day
Transcribed Image Text:Problem 2: For the following data, find: (a) The profit expected if the project is finished in 26 days. (b) The maximum profit obtainable and the project duration associated with it, i.e., the optimum duration. Project Duration Minimum Direct Cost (S) 20 41,000 22 40,600 25 39,900 27 39,200 29 38,400 31 37,600 33 36,900 34 36,500 36 36,250 Bid = $48,000 Setup cost $1,000 Indirect cost = $250/day
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