If an activity whose normal duration is 15 days can be shortened to 10 days for an added cost of $2,000, 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 periods (days) reduced. Here, the added cost is $2,000, and the reduction in duration is 5 days (from 15 days to 10 days), so the crash cost per period is $2,000 / 5 days = $400.

If an Activity Whose Normal Duration Is 15 Days Can