A task's usual lifespan is 9 days, while its crash lifespan is 7 days. Its regular price is $40, and the crash price is $100. The daily crash cost is $30.
The majority of operations are believed to be carried out under typical circumstances, but when tasks are finished sooner than anticipated, this is referred to as a crash. The expense incurred during the actions is referred to as the crash expense.
The expense incurred by choosing the quicker option to accomplish the effort is known as the crash cost. The complete cost of the alternative option, not just the additional cost, is being mentioned here. In light of this, the calculation yields a figure that indicates crash cost per time interval.
Crash cost per day= (Crash cost − Normal cost) / (Normal duration − Crash duration)
Crash cost per day= ($100 - $40) / (9 - 7)
Crash cost per day= $30
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