If an activity whose normal duration is 13 days can be shortened to 11 days for an added cost of $1,500, what is the crash cost per period?
A) $500
B) $1,500
C) $750
D) $13,000
E) $15,000

Question

Quizplus · Accepted Answer

To find the crash cost per period, we need to calculate the additional cost per day of shortening the activity by 1 day.

The additional cost of shortening the activity by 2 days can be calculated as:
Additional cost = $1,500
Number of days shortened = 13 - 11 = 2
Additional cost per day = Additional cost / Number of days shortened
= $1,500 / 2 = $750

Therefore, the crash cost per period is $750.

If an Activity Whose Normal Duration Is 13 Days Can