Exhibit 14.13 The Following Questions Use the Information Below

question 13

Multiple Choice

Exhibit 14.13
The following questions use the information below.
A student wants to buy a new car. She has three cars to choose from, A, B and C. The cars differ with respect to price, performance and looks. The student has developed the following AHP tables for price and summary. The other tables are not shown due to space limitations.
-What formula should go in cell H3 of the following spreadsheet to compute Crash Cost Per Day?

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

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Definitions:

Total Revenue

The complete amount of income generated by a business from its sales or services before any costs or expenses are subtracted.

Marginal Costs

The cost added by producing one additional unit of a product or service.

Disposable Income

The amount of money individuals or households have to spend or save after taxes have been deducted.

Carrying Costs

Expenses associated with holding inventory, including storage, handling, insurance, and spoilage costs.