Tevlin 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 H90X: What is the profitability index for job H90X?
A)$224 per hour
B)$560 per hour
C)$336 per hour
D)0.40

Question

Tevlin 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 H90X:  What is the profitability index for job H90X?
A)$224 per hour 
B)$560 per hour 
C)$336 per hour 
D)0.40

Quizplus · Accepted Answer

Profitability Index = Incremental profit F1F1F1S1F1F1F10 Amount of constrained resource required = $67,200 F1F1F1S1F1F1F10 300 hours = $224 per hour

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