The plan Regarding cost. • Our team has been tasked with planting the trees on the plot of land behind our company's new factory We are were 400 AC 350 300 PV The plan: - 30 batches of 20 trees (600 trees) - 5 batches per day (100 trees) - budgeted cost per tree 2.90$ (2.5$ per baby tree / 0.40$ for the slow release fertiliser) → total budget 1,740$ 250 200 EV K We should have been here 150 100 50 Start 1st day After the first day.. Regarding schedule... • 70 trees were planted (the team hit a patch with stones that had to be removed before the trees 400 could be planted) AC 350 300 PV • Total cost was 350 $ (we had to rent a special machine to help remove the stones which cost 147$ for the day) 250 200 EV K We are here 150 100 50 Simple EVM calculation: - Earned Value 40 trees planted x 2.90$ 203$ Start 1st day Which is where we should have been then - Planned Value 100 trees planned per day x 2.90$ = 290$ - Actual Cost- 40 trees planted x 290$ + 147$ for the machine » 350$ Planiśware Visually. Regarding schedule... 400 400 Actual cost = 350$ AC 350 350 300 - 290$ 300 Planned Value PV 250 250 Earned Value =203$ EV 200 200 150 150 100 100 50 50 Start 1st day Start 1st day Schedule variance in hours

The plan Regarding cost. • Our team has been tasked with planting the trees on the plot of land behind our company's new factory We are were 400 AC 350 300 PV The plan: - 30 batches of 20 trees (600 trees) - 5 batches per day (100 trees) - budgeted cost per tree 2.90$ (2.5$ per baby tree / 0.40$ for the slow release fertiliser) → total budget 1,740$ 250 200 EV K We should have been here 150 100 50 Start 1st day After the first day.. Regarding schedule... • 70 trees were planted (the team hit a patch with stones that had to be removed before the trees 400 could be planted) AC 350 300 PV • Total cost was 350 $ (we had to rent a special machine to help remove the stones which cost 147$ for the day) 250 200 EV K We are here 150 100 50 Simple EVM calculation: - Earned Value 40 trees planted x 2.90$ 203$ Start 1st day Which is where we should have been then - Planned Value 100 trees planned per day x 2.90$ = 290$ - Actual Cost- 40 trees planted x 290$ + 147$ for the machine » 350$ Planiśware Visually. Regarding schedule... 400 400 Actual cost = 350$ AC 350 350 300 - 290$ 300 Planned Value PV 250 250 Earned Value =203$ EV 200 200 150 150 100 100 50 50 Start 1st day Start 1st day Schedule variance in hours

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 25E

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