Heiskell Corporation has provided the following data concerning its two products: The profitability index for product F78P is closest to:
A)0.74
B)0.30
C)$6.00 per gram
D)0.59

Question

Heiskell Corporation has provided the following data concerning its two products:  The profitability index for product F78P is closest to:
A)0.74 
B)0.30 
C)$6.00 per gram 
D)0.59

Quizplus · Accepted Answer

Profitability index for a volume trade-off decision = Unit contribution margin F1F1F1S1F1F1F10 Amount of the constrained resource required by one unit = $84 F1F1F1S1F1F1F10 14 grams = $6 per gram

Heiskell Corporation Has Provided the Following Data Concerning Its Two