To determine the correct formula Jeff can use in cell E2 to calculate the monthly cost of the raw materials and be able to copy it to all the rows below, we need to consider the following elements:
1. Fixed Cost in A2: Cell A2 contains the fixed cost of raw materials per unit.
2. Quantity Purchased Each Month in Column D: Column D lists the number of units purchased each month.
3. Formula for Monthly Cost: The correct formula needs to calculate the monthly cost by multiplying the fixed cost (from A2) with the quantity purchased (from each row in Column D).
We need to ensure that when the formula is copied down from E2 to subsequent rows (E3, E4, etc.), the reference to the fixed cost in A2 remains absolute (does not change), while the reference to the quantity purchased in column D remains relative (changes to D3, D4, etc.).
The appropriate notation for this in spreadsheet formulas is as follows:
- Absolute Reference: To keep A2 constant, we use `\[tex]$A\$[/tex]2`.
- Relative Reference: To allow D2 to change as the formula is copied down, we use `D2`.
Therefore, the correct formula to use in cell E2 would be:
B. =\[tex]$A\$[/tex]2*D2
Explanation of other options:
- A. = A 2' D 2: This lacks proper reference syntax and wouldn't function correctly.
- C. =\[tex]$A\$[/tex]2'\[tex]$D\$[/tex]2: This uses absolute references for both parts of the formula, which means D2 would not change when copied.
- D. =\[tex]$A\$[/tex]2'D\[tex]$2: Similar to Option C, it uses absolute references for column A and mixed for D, but this format is incorrect.
- E. =A\$[/tex]2^{\circ} D2: This presents a confusing and incorrect syntax.
Thus, the correct formula Jeff should use in cell E2 is:
=[tex]$A$[/tex]2*D2
This formula correctly uses [tex]$A$[/tex]2 as an absolute reference for the fixed cost and D2 as a relative reference for the number of units, thereby making it suitable to copy to all rows below.
