Question

An activity performed by a subcontractor is scheduled for 20 weeks at an anticipated cost of $100,000. Due to slippage on the critical path you need to reduce this activity by three weeks. If the subcontractor informs you that the activity can be completed in 16 weeks for $200,000, what is the slope for the activity?

Answer 1

Answer:

$25 000 per week

Explanation:

slope is define by the equation

s = ( y2 -y1) / (x2 - x1) = (200000 - 100000) / (16 - 20) = $25 000 per week

it is negative slope where y2 = $ 200000, y1 = $ 100000 and x1 = 20 weeks and x2 = 16 weeks

Answer 2

Answer:

$25,000

Explanation:

The activity was supposed to be performed by the subcontractor for 20 weeks at an anticipated cost of $100,000.

If the subcontractor informs us that the activity can be completed in 16 weeks for $200,000, then the implication is that the change (slope) in the activity is: Change in cost / Change in time = ($200,000 - $100,000) / 20 weeks -16 weeks = $25,000