The profitability index for a volume trade-off decision involving products should be computed by dividing the unit contribution margin of a product by the amount of the constrained resource required by one unit of the product.

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The profitability index for a volume trade-off decision involving products is calculated by dividing the unit contribution margin of a product by the amount of the constrained resource required by one unit of the product. This helps to determine which product will generate the highest return for each unit of the constrained resource used.

The Profitability Index for a Volume Trade-Off Decision Involving Products