The normal activity duration of Activity X is 5 weeks and is budgeted to cost $12,000.The crash time for this activity is 3 weeks and is expected to cost $32,000.The cost slope for Activity X is calculated as ______.
A)(32,000 - 12,000)/ (5 - 3)
B)(12,000 - 32,000)/ (5 - 3)
C)(32,000 - 12,000)/ (3 - 5)
D)(12,000 - 32,000)/ (3 - 5)

Question

Quizplus · Accepted Answer

The formula for cost slope is (crash cost - normal cost) / (normal duration - crash duration). Therefore, the correct calculation for Activity X is (32,000 - 12,000) / (5 - 3) = $10,000 per week.

The Normal Activity Duration of Activity X Is 5 Weeks