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Eon Corporation Has Provided the Following Data Concerning Its Two

Question 36

Multiple Choice

Eon Corporation has provided the following data concerning its two products:  Z94K  R82C Selling price. $63.00$261.00 Unit variable cost50.40208.80Unit contribution margin. $12.60$52.20amount of the constrained resource required for one  unit of the constrained (grams) 39monthly unit demand 2,1004,300\begin{array}{lc}&\text { Z94K } & \text { R82C } \\\text {Selling price. }&\$ 63.00 & \$ 261.00 \\\text { Unit variable cost}&50.40 & 208.80 \\\text {Unit contribution margin. }& \$ 12.60 & \$ 52.20\\\\\text {amount of the constrained resource required for one }\\\text { unit of the constrained (grams) }&3&9\\\text {monthly unit demand }&2,100&4,300\end{array} The profitability index for product Z94K is closest to:


A) $4.20 per gram
B) 0.19
C) 0.11
D) 0.20

Correct Answer:

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