Question

The cost slope of an activity $ 250/day. The normal duration of this activity is 15 days, the crash cost is $1,500 and the maximum crashing possible for the activity is 10 days beyond the normal duration. What is the normal cost of this activity

Answer 1

Answer: $1000

Step-by-step explanation:

To calculate the normal cost of this activity, we will use the formula:

Cash slope = (Crash cost - Normal cost) / (Normal duration - Crash duration)

250 = (1500 - Normal cost) / (15 - 5)

250 = (1500 - Normal cost) / 10

Cross multiply

(250 × 10) = 1500 - Normal cost

2500 = 1500 - Normal cost

Normal cost = 2500 - 1500

Normal cost = $1000