1) Determine the minimum cost of crashing following project by 4 days?
Activity Normal Time (days) Crash Time
(days) Normal Cost Crash Cost Immediate Predecessor(s)
A 6 5 $ 900 $1,000 ?
B 8 6 300 400 ?
C 4 3 500 600 ?
D 5 3 900 1,200 A, B
E 8 5 1,000 1,600 C
2) Air Filter, Inc., sells its products for $6 per unit. It has the costs which is given below:
Rent . . . . . . . . . . . . . . . . . . . . . . . . . $100,000
Factory labor. . . . . . . . . . . . . . . . . . . $1.20 per unit
Executive salaries. . . . . . . . . . . . . . . $89,000
Raw material. . . . . . . . . . . . . . . . . . . $.60 per unit
Separate expenses between fixed and variable cost per unit. By using this information and sales price per unit of $6, calculate break-even point.