Answer:
$36.00
Step-by-step explanation:
The cost performance index (CPI) is a measure of the financial effectiveness and efficiency of a project. As a ratio it is calculated by dividing the budgeted cost of work completed, or earned value, by the actual cost of the work performed, that is to say:
CPI = Budgeted cost of work / Actual cost of work
From the statement we know that:
CPI = 1.94
Budgeted cost of work= $69.85
Cost of work in 1983 = Budgeted cost of work / CPI
Cost of work in 1983 = $69.85 / 1.94 = $36.00
