The three phases of a project must be undertaken sequentially, which means that one phase cannot begin before the previous phase is finished. We know that the cost of each of the phases breaks down into a fixed cost, independent of its
duration, and a variable cost, which depends on the duration. The following table summarizes the situation:

PHASE 1-
FIXED COST-318 000 $
VARIABLE COST-15 000 $ / day


PHASE 2
FIXED COST- 212 000 $
VARIABLE COST- 14 000 $ / day

phase 3
fixed cost-220 000 $
variable cost- 16 000 $ / day


The designer of the project must propose a price for the project. He would like to set a price that ensures a profit margin of at least 10%. Express the total cost of
the project and the price the designer should propose in function to the duration of each phase.

Q&A Education