Beatie Corporation would like to determine the relative profitability of the company's products for purposes of making volume trade-off decisions.For illustration,the company has provided the following data for product K56L: What is the profitability index for product K56L?
A)0.40
B)$28.00 per gram
C)$11.20 per gram
D)$1,256,640

Question

Beatie Corporation would like to determine the relative  profitability of the company's products for purposes of making volume trade-off decisions.For illustration,the company has provided the following data for product K56L:  What is the profitability index for product K56L?
A)0.40 
B)$28.00 per gram 
C)$11.20 per gram 
D)$1,256,640

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 = ($476.00 - $285.60)F1F1F1S1F1F1F10 17 grams = $190.40 F1F1F1S1F1F1F10 17 grams = $11.20 per gram

Beatie Corporation Would Like to Determine the Relative Profitability