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Program Management Professional · PMI
Select one answer.
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To determine "how many pennies the program is losing per dollar invested", we need CPI If CPI = 1, the program is exactly on budget If CPI < 1, the program is over budget (losing dollars) ---> our answer lies in this If CPI > 1, the program is under budget (saving money) So, let us calculate CPI (1) BAC: $2345900 (given) (2) AC (cost): $789000 (given) (3) We need to calculate EV. Since it is "30% complete", EV = 30% of BAC=$703770 (4) Note extra information provided in the question to confuse. "supposed to be 35 percent complete". This info is not needed (5) Calculate CPI, which is EV/AC = 703770/789000= 0.8919 (6) Per dollar we are losing 1 - 0.8919= 0.1080. Since they want how many pennies it will be = 10.80 pennies. Since pennies don't have decimals, round it off to 11. Hence B is the correct answer
each us lost 11 penny
calculate cost variance and divide by spent amount