Question: (12 points) 4. A project with seven activities includes only four paths that are shown below along with their lengths. The following table provides the

 (12 points) 4. A project with seven activities includes only four

paths that are shown below along with their lengths. The following table

(12 points) 4. A project with seven activities includes only four paths that are shown below along with their lengths. The following table provides the opportunuties for crashing activities. Suppose each day of shortening (crashing) the project saves $2000. Determine how many days should the project be crashed, and report the total cost for this crashing and how long the project will take to complete after the crashing. Show all your work, including the activity or activities crashed in each step and their cost. Show all your work. Cost for crashing = How long is the project after crashing? 5. An online retailer is considering three alternatives (denoted A, B and C) for making home deliveries of the orders it recerves. Each alternative provides acceptable service, and each has a particular fixed and variable cost. Alternative A relies on automated aerial vehicles and has a monthly fixed cost of $10,000 and a variable cost of $2 per delivery. Aitemative B uses automated ground vehicles and has a monthiy fixed cost of $5,000 and a variable cost of $4 per delivery. Alternative C relies of truck delivery with drivers bas a mouthily fixed cost of $3,000 and a variable cost of $7 per delivery. The revenue received for each delivery is $10. (3 pts.) a) What is the breakeven point for Alternative A in monthly deliveries? Break-even Quantity = Fixed Costs/ Sales Price per Unit - Variable Cost per Unit 10,000/102 =1,250 deliveries per month (4 pts.) b) How many deliveries should be made each month to provide a monthly profit of $10,000 with Alternative C? Total Revenue - Total Cost =10,000 (10 Number of Units) (3,000+7 Number of Units) =10,000 Number of Units =13,000/3=4,333 Therefore, Alternative C needs to make about 4,333 deliveries per month to provide a monthly profit of $10,000. (4 pts.) c) Determine the range of deliveries per year over which Alternative B is profitable. (5 pts.) d) Determine the range of deliveries per month over which Alternative B is best. Profit = Total Revenue - Total Cost Profit =(10 Number of Units )(5,000+4 Number of Units ) To compare the profits of the three alternatives. we can nse a tahis

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!