You have the following time and cost information below for use in a Time-Cost CPM Scheduling model.What are the three costs per unit of time to expedite each activity?

A)A=$300,B=$200,C=$300
B)A=$100,B=$200,C=$400
C)A=$200,B=$200,C=$200
D)A=$100,B=$400,C=$300
E)A=$200,B=$300,C=$400

Question

You have the following time and cost information below for use in a Time-Cost CPM Scheduling model.What are the three costs per unit of time to expedite each activity?

A)A=$300,B=$200,C=$300 
B)A=$100,B=$200,C=$400 
C)A=$200,B=$200,C=$200 
D)A=$100,B=$400,C=$300 
E)A=$200,B=$300,C=$400

Quizplus · Accepted Answer

To determine the cost per unit of time to expedite each activity, we need to find the slope of the tangent line for each activity on the time-cost graph. The slope represents the cost per unit of time.

For Activity A, the slope is (5000-2000)/(4-1) = $1000/3
For Activity B, the slope is (5000-2000)/(6-3) = $1000/3
For Activity C, the slope is (6000-3000)/(7-4) = $1000/3

Therefore, the cost per unit of time to expedite each activity is $1000/3, which corresponds to choice E.

You Have the Following Time and Cost Information Below for Use