The normal cost for an activity is $7,000 and the crash cost is $12,000. The normal time to complete this activity is 8 days and crash time is 4 days. If this activity is crashed by 2 days it will cost an additional:
A) $1000
B) $1250
C) $2000
D) $2500

Question

Quizplus · Accepted Answer

The crash cost per day is ($12,000 - $7,000) / (8 - 4) = $1,250. Crashing by 2 days costs 2 * $1,250 = $2,500.

The Normal Cost for an Activity Is $7,000 and the Crash