Brian is assigned his first project. If things go well, he should get promoted. The CEO is aware of this project, so he has a chance for high visibility. His first task is to define the work break down structure by interviewing project activity managers, and the firm's friendly, yet boring accountants, to get "good estimates" of project activity times and costs. For Activity Z, the crash cost per week is _____, given the following data: normal time = 5 weeks, crash time = 2, normal cost = $7,560, and crash cost = $17,365.
A) less than or equal to $1,000 per week
B) more than $1,000 but less than or equal to $2,500
C) more than $2,500 but less than or equal to $3,000
D) more than $3,000 but less than or equal to $3,500

Question

Quizplus · Accepted Answer

To find the crash cost per week for Activity Z, we need to use the following formula: 
Crash cost per week = (Crash cost - Normal cost) / (Normal time - Crash time)
Plugging in the values given, we get: 
Crash cost per week = ($17,365 - $7,560) / (5 - 2)
Crash cost per week = $3,601.67
Since this is more than $3,000 but less than or equal to $3,500, the correct answer is D.

Brian Is Assigned His First Project