You Have Collected the Data for a Time-Cost CPM Scheduling

question 14

Short Answer

You have collected the data for a time-cost CPM scheduling model analysis.The time is in days and the project "direct costs" are given here. The indirect costs for the project are determined on a daily duration basis.If the project lasts 16 days, the total indirect costs are $400; 15 days, they will be $250; 14 days, they will be $200; and 13 days, they will be $100.If you crash this project by one day what is the total (i.e., direct and indirect) project cost? ____________________
E.A costs $100/day to crash, D costs $150/day to crash, and E costs $400/day to crash.Reducing the duration of A by one day at an additional cost of $100 is the most economical.Direct costs are now $400 + $100 + $200 + $400 + $500 + $200 + $100 = $1,900.Overall duration of the project is 15 days, and indirect costs are $250.The total cost of crashing this project for one day is $2,150.

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Definitions:

Revenue

The entire financial income obtained from transactions involving the sale of products or the provision of services central to an organization's main operations.

Income Elasticity

A measure of how the demand for a good or service changes with a change in consumers' income.

Mobile Service

Telecommunication services provided through a network of base stations, enabling users to maintain communication without a fixed connection point.

Average Income

The mean income of a group, calculated by dividing the total income of the group by the number of individuals or entities in that group.