In a project, the critical path has a duration of 100 days. Activity X on the critical path has a duration of 10 days and can be crashed to 7 days at an additional cost of $3,000. What is the crash cost per day for Activity X?
Correct: $3,000 / 3 days = $1,000 per day.
Why this answer
Crash cost per day = (crash cost - normal cost) / (normal duration - crash duration). Assuming normal cost is zero incremental, crash cost per day = $3,000 / (10-7) = $1,000 per day.