A Project Has the Activity Duration and Cost Information Indicated

question 57

Multiple Choice

A project has the activity duration and cost information indicated in the table where all times are in weeks.What is the total cost for completing this project in 40 days? $\begin{array}{|l|l|l|l|l|l|} \hline &&\text { Normal }&\text { Normal }\\\text { Activity } & \text { Predecessor } & \text { Time } & \text { Cost } & \text { Crash Time }&\text { Crash Cost }\\ \hline \mathrm{A} & - & 8 & \$ 12,000 & 5 & \$ 22,000 \\\hline \mathrm{B} & \mathrm{A} & 12 & \$ 18,000 & 9 & \$ 32,000 \\\hline \mathrm{C} & \mathrm{A} & 15 & \$ 22,000 & 9 & \$ 62,000 \\\hline \mathrm{D} & \mathrm{B} & 3 & \$ 9,000 & 2 & \$ 18,000 \\\hline \mathrm{E} & \mathrm{C} & 9 & \$ 15,000 & 5 & \$ 35,000 \\\hline \mathrm{F} & \mathrm{E} & 7 & \$ 5,000 & 5 & \$ 8,000 \\\hline \mathrm{G} & \mathrm{D} & 8 & \$ 13,000 & 6 & \$ 23,000 \\\hline \mathrm{H} & \mathrm{A} & 12 & \$ 20,000 & 8 & \$ 32,000 \\\hline \mathrm{J} & \mathrm{H} & 6 & \$ 45,000 & 4 & \$ 56,000\\\hline \end{array}$

• A)$172,000
• B)$218,000
• C)$192,000
• D)$159,000

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Definitions:

Fixed Costs

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Marginal Costs

The increase in total cost that arises from producing one additional unit of a good or service.

Output

The amount of goods or services produced by a company, industry, or economy within a certain period.

Variable Costs

Costs that vary directly with the level of output, such as raw materials and direct labor expenses.