Dorich Corporation would like to determine the relative profitability of a number of jobs. For illustration purposes, the company has provided the following data for job P86M: $$\begin{array} { l r }
\text { Revenue..................... } & \$ 98,600 \
\text { Avoidable cost ............. } & \underline { 69,020 } \
\text { Incremental profit....... } & \$ 29,580
\end{array}$$ The amount of the constrained resource used by the job is 340 hours. What is the profitability index for job P86M?
A)$87 per hour
B)$290 per hour
C)$203 per hour
D)0.30

Question

Dorich Corporation would like to determine the relative profitability of a number of jobs. For illustration purposes, the company has provided the following data for job P86M: $$\begin{array} { l r } 
\text { Revenue..................... } & \$ 98,600 \
\text { Avoidable cost ............. } & \underline { 69,020 } \
\text { Incremental profit....... } & \$ 29,580
\end{array}$$ The amount of the constrained resource used by the job is 340 hours. What is the profitability index for job P86M?
A)$87 per hour
B)$290 per hour
C)$203 per hour
D)0.30

Quizplus · Accepted Answer

The Answer of Dorich Corporation would like to determine the relative profitability of a number of jobs. For illustration purposes, the company has provided the following data for job P86M: $$\begin{array} { l r } 
\text { Revenue..................... } & \$ 98,600 \
\text { Avoidable cost ............. } & \underline { 69,020 } \
\text { Incremental profit....... } & \$ 29,580
\end{array}$$ The amount of the constrained resource used by the job is 340 hours. What is the profitability index for job P86M?
A)$87 per hour
B)$290 per hour
C)$203 per hour
D)0.30

Dorich Corporation Would Like to Determine the Relative Profitability of a Number