Pm592 Week 2 Assignment

In: Business and Management

Submitted By andypicken
Words 484
Pages 2
2-1 Basic Estimating Problem
Equipment/Material
$15,000 +$35,000= $ 50,000.00
(400 feet at $25 per foot) 400(25)= 10,000.00
2 pieces of equipment at $600= 1,200.00
(3,700 of equipment at $2.70 per pound) 3,700(2.70) = 9,990.00
Total Equipment/Material $ 71,190.00

Installation/Labor (2 maintenance specialist for 2 days at 8 hours per day at $35 per hour)
$35.00(8)= $280.00 per person per day
$280.00(2)=$560.00 per person for 2 days
$560.00 (2)= $1,120.00 for installation 1,120.00
Fixed Labor = 7,500.00
Installation/Labor $ 8620.00

Overhead Engineering 15% of 71,190 10,678.50 Inspection 3% of $8620 258.60 General and Administrative Expenses
5% of $71,190=$3559.50 + 5% of $8620.00= $431.00 $3559.50 + $431.00 = 3,990.50 Total Overhead $ 14,927.60

Total Project Cost: $71,190.00 + $8620.00 + $14,927.60= $ 94,737.60 2-2 Three-point Estimate Problem
A)
Price for the material is $0.30/ lb
The most optimistic price estimate is $0.24/lb
The most pessimistic estimate is $0.62/lb
The expected price of the material:
Pexp = (Popt + 4 x Pmost + Ppess)/6
Pexp = (0.24 + (4 x 0.30 + 0.62) / 6
Pexp = 0.24 + (1.2 + 0.62) / 6
Pexp = 0.24 + 1.82/ 6
Pexp= 2.06 /6
Pexp = 0.34/ lb

B)
One Ton = 2,000 lbs
Popt = Optimistic Cost = 37 Tons
Pmost = Most Likely Cost = 40 Tons
Ppess = Pessimistic Cost = 49 Tons
Pexp = (Popt + 4 x Pmost + Ppess) / 6
Pexp = (37 + 4 x 40 + 49) / 6
Pexp = 37 + 160 + 49/ 6
Pexp = 246/ 6
Pexp = 41 tons

C) Simple Method:
Expected Cost = $0.34 lbs x (41 tons(2,000)
$.34 x 82,000= $27,880.00 D) Complex Method:
Expected Cost: $0.34/lb x 82,000lbs = $27,880
Most Optimistic Cost: $0.24 x (37) (2,000)…...

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