Hamed Corporation would like to determine the relative profitability of the company's products for purposes of making volume trade-off decisions. The company has provided the following data for product U57S: $\begin{array}{lr}
\text {Selling price }&\$ 28.00 \
\text {Variable cost per unit. }&16.80 \
\text {Unit contribution margin. }&\$ 11.20 \
\hline\text {Amount of the constrained resource used by the job }&&\text { 4 minutes }\
\text {Monthly unit sales. }&&\text {3,700 units }
\end{array}$ What is the profitability index for product U57S?
A)$41,440
B)0.40
C)$7.00 per minute
D)$2.80 per minute

Question

Hamed Corporation would like to determine the relative profitability of the company's products for purposes of making volume trade-off decisions. The company has provided the following data for product U57S: $\begin{array}{lr}
\text {Selling price }&\$ 28.00 \
\text {Variable cost per unit. }&16.80 \
\text {Unit contribution margin. }&\$ 11.20 \
\hline\text {Amount of the constrained resource used by the job  }&&\text { 4 minutes }\
\text {Monthly unit sales. }&&\text {3,700 units }
\end{array}$ What is the profitability index for product U57S?
A)$41,440
B)0.40
C)$7.00 per minute
D)$2.80 per minute

Quizplus · Accepted Answer

The Answer of Hamed Corporation would like to determine the relative profitability of the company's products for purposes of making volume trade-off decisions. The company has provided the following data for product U57S: $\begin{array}{lr}
\text {Selling price }&\$ 28.00 \
\text {Variable cost per unit. }&16.80 \
\text {Unit contribution margin. }&\$ 11.20 \
\hline\text {Amount of the constrained resource used by the job  }&&\text { 4 minutes }\
\text {Monthly unit sales. }&&\text {3,700 units }
\end{array}$ What is the profitability index for product U57S?
A)$41,440
B)0.40
C)$7.00 per minute
D)$2.80 per minute

Hamed Corporation Would Like to Determine the Relative Profitability of the Company's