Rognstad 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 M38S: What is the profitability index for job M38S?
A)$360 per hour
B)0.20
C)0.40
D)$144 per hour

Question

Rognstad 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 M38S:  What is the profitability index for job M38S?
A)$360 per hour 
B)0.20 
C)0.40 
D)$144 per hour

Quizplus · Accepted Answer

Profitability Index = Incremental profit F1F1F1S1F1F1F10 Amount of constrained resource required = $44,640 F1F1F1S1F1F1F10 310 hours = $144 per hour

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