Question

If implementing a program costs $3 for each patient and the return is $6 per patient, the cost/benefit ratio is:

a) 2:1
b) 1:2
c) 3:1
d) 1:3

Answer 1

The cost/benefit ratio is calculated by dividing the benefit ($6 per patient) by the cost ($3 per patient), resulting in a ratio of 2:1.

Step-by-step explanation:

When calculating the cost/benefit ratio, we compare the cost of implementing a program to the return or benefit received from it. In this case, the cost is $3 per patient and the return is $6 per patient. To find the ratio, we divide the benefit by the cost. The calculation would be $6 (benefit) divided by $3 (cost), which equals 2. Therefore, the cost/benefit ratio is 2:1, meaning for every dollar spent, two dollars are returned. This ratio suggests that the program is worth implementing as the benefits outweigh the costs.