If an activity whose normal duration is 13 days can be shortened to 10 days for an added cost of $1,500, the crash cost per period is
A) $500
B) $1,500
C) $750
D) $13,000
E) $15,000

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 activity is shortened by 3 days (13 days - 10 days) for an added cost of $1,500. Therefore, the crash cost per period is $1,500 / 3 days = $500.

If an Activity Whose Normal Duration Is 13 Days Can