Assume that a project manager expects to finish a project in 21 days as shown in the table below. However, the owner of the project wants it in 14 days and any period after 14 days the project manager has to pay penalty cost of $100 per day. Indirect project costs = $250 per day.

Project Activity and Cost Data

Activity	Normal Time (days)	Normal Cost ($)	Crash Time (days)	Crash Cost ($)	Immediate predecessor(s)
A	5	1000	4	1200	-
B	5	800	3	2000	-
C	2	600	1	900	A, B
D	3	1500	2	2000	B
E	5	900	3	1200	C, D
F	2	1300	1	1400	E
G	3	900	3	900	E
H	5	500	3	900	G

How much is the total penalty costs if the manager could not crash?

Select one:

a.

$1750

b.

$1400

c.

$2100

d.

$700

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The phases of project management are:

Select one:

a.

different for manufacturing projects than for service projects.

b.

planning, scheduling, and controlling.

c.

planning, programming, and budgeting.

d.

planning, organizing, staffing, leading, and controlling.

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Cost minimization is an appropriate strategy in which stage of the product life cycle?

a.

retirement

b.

introduction

c.

growth

d.

decline

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The following data refers to four products A, B, C, D

	A	B	C	D
Price	$75	$72	$45	$38
Raw materials	$10	$5	$5	$10
Labor cost (fixed)	$20	$20	$20	$20

The contribution margin of project C is

Select one:

a.

$20

b.

$40

c.

$25

d.

$28

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If a firm has fixed cost= $10,000, direct labor cost=$1.5/unit, material cost = $0.75/unit and the selling price is $4 per unit, then the contribution margin is:

Select one:

a.

$2.5

b.

$3.25

c.

$1.75

d.

$4