Bruck 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 D25Y: What is the profitability index for job D25Y?
A)$108 per hour
B)0.20
C)$540 per hour
D)0.28

Question

Bruck 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 D25Y:  What is the profitability index for job D25Y?
A)$108 per hour 
B)0.20 
C)$540 per hour 
D)0.28

Quizplus · Accepted Answer

Profitability index = Incremental profit from the segment F1F1F1S1F1F1F10 Amount of the constrained resource required by the segment = $34,560 F1F1F1S1F1F1F10 320 hours = $108 per hour

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