If an activity whose normal duration is 17 days can be shortened to 11 days for an added cost of $2,400, the crash cost per period is
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 dividing the total added cost by the number of days reduced. Here, the activity is shortened by 6 days (17 days - 11 days) for an added cost of $2,400. Therefore, the crash cost per period is $2,400 / 6 days = $400.

If an Activity Whose Normal Duration Is 17 Days Can