Figure to accompany Table 2.9 Table 2.9

-What is the crashing cost per week for activity A in Table 2.9?
A)$2,000
B)$3,000
C)$4,000
D)This activity cannot be crashed.

Question

Figure to accompany Table 2.9  Table 2.9
 
-What is the crashing cost per week for activity A in Table 2.9?
A)$2,000 
B)$3,000 
C)$4,000 
D)This activity cannot be crashed.

Quizplus · Accepted Answer

Activity A has a normal duration of 3 weeks and a crashing cost of $9,000. Its crash cost per week is $3,000 (which is the difference between the normal cost and the crash cost divided by the difference between the normal duration and the crash duration: ($9,000 - $6,000) / (3 weeks - 2 weeks) = $3,000). Therefore, to reduce the duration of activity A by one week, the additional cost would be $3,000. The best choice would be to reduce the duration of activity A to 2 weeks for a total cost of $6,000, as this reduces the project duration by 1 week and results in a total cost of $61,000.

Figure to Accompany Table 2.9 Table 2.9