Manchester Corporation would like to determine the relative profitability of the company's products for purposes of making volume trade-off decisions. For example, the selling price of product G94T is $304.00 and its unit variable cost is $243.20. One unit of the product requires 16 ounces of the constrained resource. Monthly sales are 9,300 units. What is the profitability index for product G94T?
A) $565,440
B) 0.20
C) $3.80 per ounce
D) $19.00 per ounce
Correct Answer:
Verified
Q10: Mccraig Corporation would like to determine the
Q11: The opportunity cost of using one
Q12: Relative profitability is concerned with ranking business
Q13: A company that makes horsehair cowboy belts
Q14: The opportunity cost of using a unit
Q16: Relative profitability measures should only be used
Q17: Alberding Corporation would like to determine the
Q18: Tevlin Corporation would like to determine the
Q19: In the absence of a constraint, all
Q20: Relative profitability should be measured by dividing
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents