Your project to obtain charitable donations is now 33 days into a planned 43-day project. The project is divided into 3 activities. The first activity is designed to solicit individual donations. It is scheduled to run the first 28 days of the project and to bring in $26,000. Even though we are 33 days into the project, we still see that we have only 91 percent of this activity complete. The second activity relates to company donations and is scheduled to run for 33 days starting on day 5 and extending through day 38. We estimate that even though we should have (28/33) 85 percent of this activity complete, it is actually only 54 percent complete. This part of the project was scheduled to bring in $151,000 in donations. The final activity is for matching funds. This activity is scheduled to run the last 10 days of the project and has not started. It is scheduled to bring in an additional $52,000. So far $174,000 has actually been brought in on the project.

The question has some details missing ; it continues by saying;  Calculate the schedule variance, schedule performance index, cost variance and cost (actually value in this case) performance index. (Negative values should be indicated by a minus sign. Do not round intermediate calculations. Round your dollar amounts to the nearest whole number. Round your "performance index" values to 3 decimal places.)

Explanation:

Budgeted revenue of work completed for Activity 2= Budgeted revenue X Planned completion till date

Budgeted revenue of work completed for Activity 3= Budgeted revenue X Planned completion till date

Thus, budgeted revenue of the project = Budgeted rev. of Activity 1 + Budgeted rev. of Activity 2 + Budgeted rev. of Activity 3

Budgeted revenue of work performed till 33rd day,

Budgeted revenue of work performed for Activity 1 = Budgeted revenue X actual completion date

= 26000 X 91% = $23660

Budgeted revenue of work performed for Activity 2= Budgeted revenue X actual completion date

= 151000 X 54% = $81540

Budgeted revenue for work performed for Activity 3 = Budgeted revenue X actual completion date

= 52000 X 0% = $0

Thus, budgeted revenue of work performed project = Budgeted rev. of Activity 1 + Budgeted rev. of  Activity 2 + Budgeted rev. of  Activity 3

= 23660 + 81540 + 0 = $105,200

Schedule variance = Budgeted revenue of work performed - budgeted revenue of work scheduled = 105200 - 154350 = - $49150

The values gotten is an indication that the project is behind schedule.

Schedule performance index = Budgeted revenue of work performed/ budgeted revenue of work scheduled = 105200 / 154350 = 0.6816

A scheduled performance index of less than 1 also indicates project is behind schedule.

Cost variance = Budgeted revenue of work performed - Actual revenue = 105200 -174000 = -$68800

Cost performance index = Budgeted revenue of work performed / Actual revenue = 105200/ 174000 = 0.6046

A cost performance index of less than 1 also indicates project is performing better than planned performance in terms of revenue

due to the changes the federal reserve is making the unused reserves will impact the economy by them facing inflation. inflation is definfed as the increase in pricing of a good or service but the decline of the value of money used for purchasing those items. when the economy has a high inflation rate, they are subject to money loss and hurt on the economy.

answer; risk transference;