Table 7.10

Four possible options exist to crash activities: crash A by one week at a cost of $6,000; crash C by two weeks at a cost of $15,000; crash E by one week at a cost of $2,000; and crash I one week at a cost of $7,000. What is the maximum amount of additional profit that can be made by crashing an option (or options)?
A) less than or equal to $4,000
B) greater than $4,000 but less than or equal to $8,000
C) greater than $8,000 but less than or equal to $12,000
D) greater than $12,000
-If a project has exactly one critical path, which of the following statements is True?
A) Crashing an activity on the critical path will always result in an increase in total project profits.
B) Activities on the critical path cannot be crashed.
C) Crashing an activity on the critical path will always result in a reduced total project completion time.
D) The best schedule is one in which all activities are crashed as much as possible.

Question

Table 7.10
  
Four possible options exist to crash activities: crash A by one week at a cost of $6,000; crash C by two weeks at a cost of $15,000; crash E by one week at a cost of $2,000; and crash I one week at a cost of $7,000. What is the maximum amount of additional profit that can be made by crashing an option (or options)?
A) less than or equal to $4,000
B) greater than $4,000 but less than or equal to $8,000
C) greater than $8,000 but less than or equal to $12,000
D) greater than $12,000
-If a project has exactly one critical path, which of the following statements is True?
A) Crashing an activity on the critical path will always result in an increase in total project profits. 
B) Activities on the critical path cannot be crashed. 
C) Crashing an activity on the critical path will always result in a reduced total project completion time. 
D) The best schedule is one in which all activities are crashed as much as possible.

Quizplus · Accepted Answer

Option C (crash C by two weeks at a cost of $15,000) would result in the maximum additional profit of $10,000 (derived from the difference between the additional profit of $40,000 and the cost of $30,000).

Answer: C
 Crashing an activity on the critical path will always result in a reduced total project completion time. However, it may not always result in an increase in total project profits, as the cost of crashing an activity may exceed the additional profit gained from it. Activities on the critical path can be crashed, but it should be done carefully to ensure that the critical path is not lengthened or made non-critical. The best schedule is not one in which all activities are crashed as much as possible, but rather one that balances the trade-off between reduced project duration and increased project cost.

Table 7.10 Four Possible Options Exist to Crash Activities: Crash a by Crash