Letze 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 I69Y: What is the profitability index for product I69Y?
A)$109,120
B)0.20
C)$22.00 per minute
D)$4.40 per minute

Question

Letze 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 I69Y:  What is the profitability index for product I69Y?
A)$109,120 
B)0.20 
C)$22.00 per minute 
D)$4.40 per minute

Quizplus · Accepted Answer

Profitability Index = Incremental profit F1F1F1S1F1F1F10 Amount of constrained resource required = $17.60 F1F1F1S1F1F1F10 4 minutes = $4.40 per minute

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