Paulina, a fashion designer, has a new project that requires her to make five dresses in seven days. A sum of $2,000 is allotted to her to fund the entire project. In three days, she completes one-third of the work and spends $1,200. Calculate the cost performance index from the given scenario.
A) 0.55
B) 0.75
C) 0.33
D) 0.66
E) 0.25

Question

Quizplus · Accepted Answer

Cost Performance Index (CPI) = Earned Value (EV) / Actual Cost (AC)EV = (Work Completed / Total Work) * BudgetWork Completed = 1/3 * 5 = 1.67 dressesEV = (1.67 / 5) * 2000 = $666.67CPI = 666.67 / 1200 = 0.55

Paulina, a Fashion Designer, Has a New Project That Requires