Consider the project network and data shown below:
Activity A BCDEFGH Normal Time (Months) 36224742 Crash Time (Months) 24212622 Normal Cost $100,000$200,000$90,000$180,000$225,000$80,000$310,000$400,000 Crash Cost $150,000$320,000$90,000$250,000$450,000$120,000$500,000$400,000 Crash Cost/Month
a.Determine the critical path.
b.If management wants the project done in one less month, which activity should they crash?
Evaluate the financial implications of product defects and the options for corrective action based on cost-benefit analysis.
Compute and understand the significance of the payback period in capital budgeting decisions.
Apply the concept of contribution margin to determine the most profitable product mix.
Calculate and interpret the accounting rate of return on an investment.
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