Armster Corporation has provided the following data concerning its two products: The profitability index for product B10E is closest to:
A)0.61
B)$12.40 per ounce
C)0.40
D)$31.00 per ounce

Question

Armster Corporation has provided the following data concerning its two products:  The profitability index for product B10E is closest to:
A)0.61 
B)$12.40 per ounce 
C)0.40 
D)$31.00 per ounce

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 = ($527.00 - $316.20)F1F1F1S1F1F1F10 17 ounces = $210.80 F1F1F1S1F1F1F10 17 ounces = $12.40 per ounce

Armster Corporation Has Provided the Following Data Concerning Its Two