Multi-Storey Builders Ltd Had a Large Three-Year Project with Total

question 7

Multiple Choice

Multi-Storey Builders Ltd had a large three-year project with total revenue of $8 000 000 and estimated total costs of $6 500 000. The project was 20 per cent complete at the end of the first year, 70 per cent complete at the end of the second year and 100 per cent complete at the end of the third year. Revenues and costs were as estimated. How much profit was earned during the second year if the percentage of completion method was used?

• A) $300 000
• B) $750 000
• C) $1 050 000
• D) None of the above

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Definitions:

Gas Mileage

The efficiency of a vehicle in terms of the distance traveled per unit of fuel consumed, typically measured in miles per gallon (mpg) or kilometers per liter (km/L).

Harley Davidson

An American motorcycle manufacturer, known for its heavyweight motorcycles designed for cruising on highways.

Cutting Time

The period during which a machine tool is actively shaping, removing, or altering material in a manufacturing process.

Normal Distribution

A probability distribution that is symmetrically centered around the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.