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Using the Following Figures, What Is the Incremental Crash Cost

question 6

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Using the following figures, what is the incremental crash cost for this project activity?
Normal time = 6 months, Crash time = 4 months
Normal cost = $27,000, Crash cost = $35,000


Definitions:

Returns to Scale

The rate at which production increases in response to proportional increases in all inputs.

Marginal Product

The extra yield generated from the utilization of one additional unit of a certain input while maintaining the levels of all other inputs unchanged.

Labor Hours

The total number of hours worked by all employees of a company.

Acceptance

In contract law, the offeree's indication to the offeror that the offeree agrees to be bound by the terms of the offeror’s offer or proposal to form a contract.

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