If an activity whose normal duration is 15 days can be shortened to 10 days for an added cost of $2,000,what is the crash cost per period?
A)$400
B)$2,000
C)$10,000
D)$20,000
E)$30,000

Question

Quizplus · Accepted Answer

The crash cost per period is calculated by subtracting the normal cost from the crash cost and dividing it by the difference in duration.

Crash cost per period = (Crash cost - Normal cost) / (Normal duration - Crash duration)
Crash cost per period = ($2,000 - $0) / (15 days - 10 days)
Crash cost per period = $400 per day

If an Activity Whose Normal Duration Is 15 Days Can