The normal cost for an activity is 7000 and the crash cost i

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:

$1000

$1250

$2000

$2500

Solution

Solution : $2500

= ( 12000 - 7000 ) / ( 8 - 4 )

= $1250 per day

Therefore , for 2 days , Additional cost = 1250 * 2 = $2500 Answer