A project manager is analyzing the resource allocation for three ongoing projects: Project P, Project Q, and Project R. The following data is available: Project P: 150 labor hours, 20 units of material, 5 days duration Project Q: 200 labor hours, 30 units of material, 8 days duration Project R: 120 labor hours, 15 units of material, 4 days duration If the objective is to minimize 'Cost Per Weighted Unit' where labor hours are weighted at 2, material units at 3, and duration days at 1, which project is the most cost-effective?

Correct answer: B. Project R

First, calculate the 'Weighted Cost' for each project: Weighted Cost = (Labor Hours * 2) + (Material Units * 3) + (Duration Days * 1) Project P: Weighted Cost = (150 * 2) + (20 * 3) + (5 * 1) = 300 + 60 + 5 = 365 Project Q: Weighted Cost = (200 * 2) + (30 * 3) + (8 * 1) = 400 + 90 + 8 = 498 Project R: Weighted Cost = (120 * 2) + (15 * 3) + (4 * 1) = 240 + 45 + 4 = 289 The question asks to minimize 'Cost Per Weighted Unit'. This phrasing is ambiguous. Does 'per weighted unit' mean per *some output unit* (which is not provided), or does it simply mean to find the project with the lowest 'Weighted Cost'? Given no output units are provided, 'Cost Per Weighted Unit' must refer to the calculated 'Weighted Cost' itself, implying we simply need to find the project with the lowest Weighted Cost. Comparing the Weighted Costs: Project P: 365 Project Q: 498 Project R: 289 Project R has the lowest Weighted Cost (289), making it the most cost-effective under this metric.