Oliver Lehmann ( 75 ) study question number 16

Submitted by mickcalcara on Mon, 06/14/2010 - 12:10

Hi. can someone walk through Oliver Lehmann study question number 16? The answer is listed as d but I am not sure how this caluculated. Thanks..

 

http://www.oliverlehmann.com/pmp-self-test/75-free-questions.htm

 

You are running a project for a customer based on a cost reimbursable contract with the following terms:
 
Target costs:                 $     1,000,000
Fixed fee:     $     100,000
Benefit/cost sharing:     80% / 20%
Price ceiling:     $     1,200,000

Which is the PTA (= Point of total assumption, Break point) of the project?
 
a. $1,300,000
b. $1,500,000
c. $80,000
d. $1,125,000

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General Discussion
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swet

Mon, 06/14/2010 - 13:34

Ceiling Price = $1,200,000


Target Price = $1,000,000 (Cost) + $ 100,000 (fee) = $1,100,000


Target Cost = $1,000,000


Buyer Share Ratio = 0.8 (80%)


PTA = [ Ceiling price - Target price ] / Buyer's Share ratio + Target Cost


        = [$1,200,000 - $1,100,000] / 0.8 + $1,000,000


        = $1,125,000


        = Option D


Swetketu Patel, PMP

dhirajbisht

Fri, 02/18/2011 - 10:43






A project has the following

Earned value data assessed: AC: $ 4,000,000 CV: $ -500,000 SPI: 1.12 BaC: $ 9,650,000





What is the

Earned value of the project? 34

o $3,000,000


o $3,500,000


o $4,480,000


o $5,650,000



Can some one pls make me understand if this question is wrong ?


Cost variance is -500000 and CV = EV - AC So if we go as per that it should be EV = CV + AC and if we apply same thing here answer should not be 300000$ & as per Oliver Lehman answer sheet teh answer is 300000$


 


Can some one pls explain

sv

Mon, 02/28/2011 - 21:54

as per oliver lehmann ans sheet the ans is 350000 (the same that u got).


SV

jmoore0536

Tue, 07/12/2011 - 20:18

Is it me or is that Math wrong?

mohankinra

Thu, 07/14/2011 - 05:02

CV=EV-AC


EV=CV+AC = -500K+4000K=3500K = 3,500,000


Regards