If an activity whose normal duration is 55 days can be shortened to 50 days for an added cost of $45,000, the crash cost per period is
A) $9,000.
B) $500.
C) $900.
D) $4,500.
E) $45,000.

Question

Quizplus · Accepted Answer

The crash cost per period is calculated by dividing the total added cost by the number of days reduced. Here, the cost is $45,000 and the reduction in days is 5 (from 55 to 50 days), so $45,000 / 5 days = $9,000 per day.

If an Activity Whose Normal Duration Is 55 Days Can