The cost in per year and effectiveness measure in items


The cost in $ per year and effectiveness measure in items salvaged per year for four mutually exclusive service sector alternatives have been collected. (a) Calculate the cost effectiveness ratio for each alternative, and (b) use the CER to identify the best alternative.

Alternative

Cost C, $/Year

Salvaged Items/Year E

W

355

20

X

208

17

Y

660

41

Z

102

7

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Cost Accounting: The cost in per year and effectiveness measure in items
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