An Activity X has a duration of 5 weeks and is budgeted to cost $12,000.The crash time for this activity is 3 weeks and is expected to cost $32,000.The cost slope for Activity X is given by ______.
A)(32,000 - 12,000)divided by (5 - 3)
B)(5 - 3)divided by (32,000 - 12,000)
C)32,000 divided by 5
D)12,000 divided by 3

Question

Quizplus · Accepted Answer

The cost slope is calculated as the difference in cost between the normal duration and the crash duration divided by the difference in duration between normal and crash.

Therefore, the cost slope for Activity X is:

(32,000 - 12,000) / (5 - 3) = $10,000 per week

An Activity X Has a Duration of 5 Weeks and Is