A Project Whose Critical Path Has an Estimated Time of 120

question 2

Multiple Choice

A project whose critical path has an estimated time of 120 days with a variance of 100 has a 20% chance that the project will be completed before day (rounded to nearest day) .

• A) 98
• B) 112
• C) 120
• D) 124
• E) 220

---

Definitions:

Break-even Point

The level of sales or production at which total revenues equal total costs, resulting in neither profit nor loss.

Contribution Margin

The selling price of a product minus the variable cost per unit, used to cover fixed costs and contribute to net profit.

Fixed Costs

Expenses that do not change with the level of production or sales activities within a short time.

Variable Costs

Expenses which are dependent on the volume of activity within a business.