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Month Stage Cost(Rs. '000 per man-month)
$1-2$ Specification $40$
$3-4$ Design

$20$

$5-8$ Coding

$10$

$9-10$ Testing

$15$

$11-15$ Maintenance $10$

The number of people employed in each month is:

 Month No. of people employed $1$ $2$ $3$ $4$ $5$ $6$ $7$ $8$ $9$ $10$ $11$ $12$ $13$ $14$ $15$ $2$ $3$ $4$ $3$ $4$ $5$ $5$ $4$ $4$ $1$ $3$ $3$ $1$ $1$ $1$

Due to an overrun, the Design stage took three months, i.e. months $3, 4$ and $5$. The number of people working on Design in the fifth month was $5$. Calculate the percentage change in the cost incurred in the fifth month. (due to improvement in “Coding” technique, the stage was completed in months $6-8$ only).

1. $225$%
2. $150$%
3. $275$%
4. $240$%
asked
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## 1 Answer

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If the coding stage was performed in the $5^{th}$ month, then the cost will be $10,000$ per man-month which is $10,000 \times 4 = 40,000$ because the coding stage was supposed to perform by $4$ people.

But,

now the design stage is performed in the $5^{th}$ month & $5$ people are working on that stage and for performing or doing the design stage the cost is $20,000$ per man-month, & the total cost will be  $20,000 \times 5 = 1,00,000$ in the $5^{th}$ month.

In the $5^{th}$ month, the cost was supposed to be $40,000$

& now the cost incurred = $1,00,000$

Percentage change in the cost incurred in the $5^{th}$ month = $\dfrac{(1,00,000-40,000)}{40,000} \times 100\% \\ = \dfrac{60,000}{40,000} \times 100\% \\ = \dfrac{6}{4} \times 100\% \\ = \dfrac{3}{2} \times 100\% \\ = 150\%$
answered by (2.5k points) 5 9 18

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