An activity performed by a subcontractor is scheduled for 20 weeks at an anticipated cost of $100,000.Due to slippage on the critical path you need to reduce this activity by three weeks.If the subcontractor informs you that the activity can be completed in 16 weeks for $200,000,what is the slope for the activity?
A)$5,000 per week
B)$33,333 per week
C)$25,000 per week
D)$12,500 per week

Question

Quizplus · Accepted Answer

The slope of an activity represents the additional cost per week required to complete the activity earlier than its current duration.

To calculate the slope of the activity, we first need to determine the additional cost required to reduce the duration from 20 weeks to 16 weeks:

Additional cost = $200,000 - $100,000 = $100,000

Next, we need to determine the duration reduction:

Duration reduction = 20 weeks - 16 weeks = 4 weeks

Finally, we can calculate the slope:

Slope = Additional cost / Duration reduction

Slope = $100,000 / 4 weeks

Slope = $25,000 per week

Therefore, the correct answer is C.

An Activity Performed by a Subcontractor Is Scheduled for 20