O’Brien Company manufactures and sells one product. The following information pertains to each of the company’s first three years of operations:

During its first year of operations, O’Brien produced 92,000 units and sold 74,000 units. During its second year of operations, it produced 77,000 units and sold 90,000 units. In its third year, O’Brien produced 89,000 units and sold 84,000 units. The selling price of the company’s product is $79 per unit.

1. Assume the company uses variable costing and a FIFO inventory flow assumption (FIFO means first-in first-out. In other words, it assumes that the oldest units in inventory are sold first):

a. Compute the unit product cost for Year 1, Year 2, and Year 3.

b. Prepare an income statement for Year 1, Year 2, and Year 3.

Ogilvy Company manufactures and sells one product. The following information pertains to each of the company’s first three years of operations:

The company does not incur any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, Ogilvy produced 79,000 units and sold 79,000 units. During its second year of operations, it produced 79,000 units and sold 73,400 units. In its third year, Ogilvy produced 79,000 units and sold 84,600 units. The selling price of the company’s product is $78 per unit.

Required:

1. Assume the company uses super-variable costing:

a. Compute the unit product cost for Year 1, Year 2, and Year 3.

b. Prepare an income statement for Year 1, Year 2, and Year 3.

2. Assume the company uses a variable costing system that assigns $28 of direct labor cost to each unit produced:

a. Compute the unit product cost for Year 1, Year 2, and Year 3.

b. Prepare an income statement for Year 1, Year 2, and Year 3.

3. Reconcile the difference between the super-variable costing and variable costing net operating incomes in Years 1, 2, and 3.

Ogilvy Company manufactures and sells one product. The following information pertains to each of the company’s first three years of operations:

The company does not incur any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, Ogilvy produced 69,000 units and sold 69,000 units. During its second year of operations, it produced 69,000 units and sold 65,400 units. In its third year, Ogilvy produced 69,000 units and sold 72,600 units. The selling price of the company’s product is $59 per unit.

Required:

1. Assume the company uses super-variable costing:

a. Compute the unit product cost for Year 1, Year 2, and Year 3.

b. Prepare an income statement for Year 1, Year 2, and Year 3.

2. Assume the company uses a variable costing system that assigns $18 of direct labor cost to each unit produced:

a. Compute the unit product cost for Year 1, Year 2, and Year 3.

b. Prepare an income statement for Year 1, Year 2, and Year 3.

3. Reconcile the difference between the super-variable costing and variable costing net operating incomes in Years 1, 2, and 3.

What does Scope Creep mean and why is it risky to a project? ……………………………………………………………………………………………… ………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

The sum of knowledge including proven traditional practices that are widely applied, and innovative mechanisms that are emerging in the project management profession is referred to as ………………………………………………………………………. ………………………………………………………………………………………………

The ………………………………………………………. determines what is appropriate for any given project. Project requirements refer to …………………………………………………………….. ……………………………………………………………………………………………. Projects are not ongoing efforts. This means projects are …………………………….. and their durations are …………………………………… In ADM, a ‘dummy’ activity refers to ………………………………………………… ………………………………………………………………………………………….. ………………………………………………………………………………………….. In a project network, the difference between a project activity’s ES and LS is called …………………………… or…………………..... A project management team consists of 6 members. What is the number of communication channels available to them? ……………………………. As project manager in a matrix organization, mention the two key measures you would take to resolve potential conflicts in operational priorities between you and other functional managers in respect of the use of skilled resources. Developing a …………………………………………………………………. and ……………………………………………… A Water Project in a community has been estimated to cost a total of GH¢70,000.00, and to be completed in a space of 8 months. The project commenced on September 1, 2017. The budgeted cost of work scheduled is GH¢60,000.00. As at August 31, the actual cost of work performed stands at GH¢50,000.00 and the cost variance is GH¢4,000.00. Use this information to answer questions 11 to 14. What is the value of all the work that has been completed as at August 31? ………………………………………………………………………….. What is the percentage of the total work that has been completed? ……………….. Find the Schedule Variance (SV)……………………………………………. Using the SPI and the CPI indices, what can you say about the project ………………………………………………………. …………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… Calculate the EAC, and the ETC in terms of cost and time ………………………………………………………………………………………… …………………………………………………………………………………………. ……………………………………………………………………………………………. Project planning processes can be divided into two: name them ……………………... ……………………….and……………………………………………………………. In solicitation planning, ITQ means ……………………………………………….. You are the project manager of the development and marketing of a new product. Eight months after the introduction of the product onto the market, you noticed a surge in customer complaints and a decline in sales levels. Which cost category would be worsened? …………………………………………………………………………. The amount of individual resource an existing schedule requires during specific time periods is referred as …………………………………………………. A …………………of……………….. is any factor that can affect the performance of a project, impede the smooth execution of the project or terminate the project. ………………………is a measure of the probability and consequence of not achieving a project on time and within budget. State any two (2) reasons for outsourcing projects: …………………………………………………………………………………… …………………………………………………………………………………… Management has asked you to explain the relationship between project quality and project scope. Which of the following should be your best answer? The project scope will include metrics for quality. Quality metrics will be applied to the project scope. Quality is the process of completing the scope to meet stated or implied needs. Quality is the process of evaluating the project scope to ensure quality exists. A tool that links the project roles and responsibilities to the project scope definition is called ……………………………………………………………. Explain the following: Status Report …………………………………………………………………………… …………………………………………………………………………………………… Progress Report …………………………………………………………………………………………… …………………………………………………………………………………………… Use the table below to answer the questions 25 to 28. Activity Optimistic duration Pessimistic duration Most Likely duration Weighted duration Immediate Predecessor P 15 27 21 - Q 18 36 24 P R 26 40 24 P S 21 39 27 Q T 27 33 24 Q,R U 16 32 24 S,T V 16 30 26 U Calculate the actual duration of each activity (fill-in the table) Draw an AOA network diagram for the activities (in the space below): State the minimum duration of the project. ………………………………………………. State the ES and LS time of activity T ……………………………………………………. A project manager can consider the ‘Push communication’ method when planning project communication management. Mention any two (2) factors that the manager must consider to ensure success. ……………………………………… . ...ii……………………………………….. State, one for each, any two physiological and safety needs of workers engaged in a project which the project manager must endeavour to satisfy. …………………………………………………………………………………………….. If CPI is equal to 1, it means ……………………………………………………………… ……………………………………………………………………………………………… The ………………………………………………… is the input into Activity Definition …………………………………………….is the amount of time it takes before discounted benefits exceeds discounted costs. A project is expected to yield $50,000.00 in 5 years’ time at the rate of 12% compounded annually. How much money should be invested in the project? ………………………………………………………. A project risk refers to ………………………………………………………………….. …………………………………………………………………………………………… A project constraint is ……………………………………………………………………. ……………………………………………………………………………………………… What is a project deliverable? ………………………………………………………….. ……………………………………………………………………………………………… Differentiate between project output and project outcome. ……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… An organization desires to undertake one of three important projects. You have been consulted as a PM professional for advice. What 4 factors would you consider to enable the entity make a rational and informed choice? i………………………………………………ii……………………………………………. iii………………………………………………iv…………………………………………. What is the difference between risk mitigation and risk avoidance? …………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….... …………………………………………………………….. most often defines project success. In managing project conflicts, what does it mean to employ “a smoothing” approach to resolve a particular conflict? ……………………………………………………………… ……………………………………………………………………………………………………………………………………………………………………………………………… What makes an individual a stakeholder in a project? ……………………………………………………………………………………………………………………………………………………………………………………………… A process that ensures that the descriptions of a project’s products and deliverables are correct and complete is known as ……………………………………………………….. The variance and the pessimistic time estimate of a project activity are 32/3 and 12 days respectively. Find the activity’s optimistic time estimate. …………………………….. All fast-tracked projects are crashed. True or False? The total float along a critical path in a project network is zero. True or False? AOA is a precedence diagramming method of project activity sequencing. True or False? A project team comprises 5 members. The number of communication channels available to them is 15. True or False? An insurable risk presents opportunity for loss only. True or False?

1). Haas Company manufactures and sells one product. The following information pertains to each of the company’s first three years of operations:

During its first year of operations, Haas produced 60,000 units and sold 60,000 units. During its second year of operations, it produced 75,000 units and sold 50,000 units. In its third year, Haas produced 40,000 units and sold 65,000 units. The selling price of the company’s product is $62 per unit.

Required:

1a. Compute the company’s break-even point in unit sales.

1b. Assume the company uses variable costing:

1c. Compute the unit product cost for Year 1, Year 2, and Year 3.

1d. Prepare an income statement for Year 1, Year 2, and Year 3.

1e. Assume the company uses absorption costing:

1f. Compute the unit product cost for Year 1, Year 2, and Year 3.

1g. Prepare an income statement for Year 1, Year 2, and Year 3.

2.

Royal Lawncare Company produces and sells two packaged products—Weedban and Greengrow. Revenue and cost information relating to the products follow:

Common fixed expenses in the company total $112,000 annually. Last year the company produced and sold 37,000 units of Weedban and 15,000 units of Greengrow.

Required:

Prepare a contribution format income statement segmented by product lines.

3.

Walsh Company manufactures and sells one product. The following information pertains to each of the company’s first two years of operations:

During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations, it produced 40,000 units and sold 50,000 units. The selling price of the company’s product is $83 per unit.

Required:

3a. Assume the company uses variable costing:

3b. Compute the unit product cost for Year 1 and Year 2.

3c. Prepare an income statement for Year 1 and Year 2.

3d. Assume the company uses absorption costing:

3e. Compute the unit product cost for Year 1 and Year 2.

3f. Prepare an income statement for Year 1 and Year 2.

3g. Reconcile the difference between variable costing and absorption costing net operating income in Year 1.

1. Becca needs to borrow $143,000 to purchase a new home.  The bank has given her two options; the first is a 20 year loan at 4.35% or the second is a 30 year loan at 4.95%.
   1. How much is the payment for each of these loans?

20-year payment______________    30-year payment ______________

2. What is the total cost of each mortgage?

20-year total cost______________   30-year total cost ______________

3. How much will Becca save if she chooses the 20 year loan? _______________

1. Becca needs to borrow $143,000 to purchase a new home.  The bank has given her two options; the first is a 20 year loan at 4.35% or the second is a 30 year loan at 4.95%.
   1. How much is the payment for each of these loans?

20-year payment______________    30-year payment ______________

2. What is the total cost of each mortgage?

20-year total cost______________   30-year total cost ______________

3. How much will Becca save if she chooses the 20 year loan? _______________

Machine A costs $850,000 and would produce cash flows of $220,000 per year for the first two years, $350,000 per year for the next two years, and $150,000 in the final year. Machine B costs $650,000 and would produce cash flows of $250,000 per year for the first two years, $200,000 the following year, $150,000 in its fourth year, and $140,000 in its final year. Your required return is 11%. What is the IRR of buying machine B?

company plans to invest in new equipment to improve productivity. The planned investment is $500,000 now and $100,000 in year 1. The gross income for year 1 is $175,000, year 2 is $300,000, and year 3 is $600,000. Taxes related to the investment are $50,000 in year 1, $75,000 in year 2 and $100,000 in year 3.

solve for: The before tax rate of return for the investment, The after-tax rate of return for the investment and How does the after-tax rate of return compare to the company’s MARR of 15%?

Dawn and Mildred had the same starting sum of $120,000. Each made withdrawals of $24,000 a year. In years 2, 3, and 4, each had returns of 9% a year. Dawn had a 50% drop in year 1 and a 50% gain in year 5, while Mildred had a 50% gain in year 1 and a 50% drop in year 5.

A) Calculate the remaining sum for each woman at the end of year 5.

B) Explain why there is such a big difference in the remaining amounts.