What Formula Should Go in Cell H3 of the Following

question 8

Multiple Choice

What formula should go in cell H3 of the following spreadsheet to compute Crash Cost Per Day?
$\begin{array}{|c|c|c|c|c|c|c|c|c|}\hline & \mathrm{A} & \text { B } & \mathrm{C} & \text { D } & E & F & \mathrm{G} & \mathrm{H} \\\hline 1 & & & \text { Normal } & & \text { Crash } & & \text { Allowable } & \begin{array}{c}\text { Crash } \\\text { Cost } \\\end{array} \\\hline 2 & \text { Activity } & \text { Description } & \text { Time } & \text { Cost } & \text { Time } & \text { Cost } & \text { Crash Days } & \begin{array}{l}\text { Per } \\\text { Day }\end{array} \\\hline 3 & \mathrm{~A} & - & 4 & 12000 & 2 & 14000 & 2 & 1000 \\\hline 4 & \text { B } & \text { - } & 3 & 6000 & 2 & 6500 & 1 & 500 \\\hline 5 & \text { C } & \text { - } & 2 & 18000 & 1 & 19000 & 1 & 1000 \\\hline 6 & \text { D } & \text { - } & 7 & 14000 & 4 & 20000 & 3 & 2000 \\\hline 7 & E & - & 2 & 3500 & 1 & 4000 & 1 & 500 \\\hline 8 & F & - & 2 & 6000 & 1 & 7500 & 1 & 1500 \\\hline 9 & \text { G } & - & 3 & 9000 & 1 & 12000 & 2 & 1500 \\\hline & \text { COSTS } & & & & & & & \\\hline\end{array}$

• A)=C3-E3)/F3-D3)
• B)=F3-D3)/C3-E3)
• C)=F3)/C3-E3)
• D)=F3-D3)/E3)

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Definitions:

Budget Line

An illustrative depiction of every possible pairing of two items that could be bought within a set budget at unchanging prices.

Slope

A measure of the steepness or incline of a line, often calculated as the ratio of the vertical change to the horizontal change between two points on the line.

Good A

A generic term often used in economics to describe a type of product or commodity.

Budget Line

A graphical representation of all possible combinations of two goods that a consumer can purchase with a given budget at prevailing prices.