Question

A company could add $10,000 per week in revenues if the project depicted in Table 7.10 could be shortened.

Table 7.10


Activity Immediate Predecessor(s) Time (weeks)
A -- 7
B -- 9
C A 8



D A, B 8
E B 9
F C 10



G D, E 5
H E 10
I F, G 5

Four possible options exist to crash activities: crash A by one week at a cost of $6,000; crash C by two weeks at a cost of $15,000; crash E by one week at a cost of $2,000; and crash I one week at a cost of $7,000. What is the maximum amount of additional profit that can be made by crashing an option (or options)?

A) less than or equal to $4,000

B) greater than $4,000 but less than or equal to $8,000

C) greater than $8,000 but less than or equal to $12,000

D) greater than $12,000

Answer

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