Deemer Corporation has provided the following data concerning its two products: The profitability index for product T57U is closest to:
A)0.06
B)0.20
C)$11.00 per ounce
D)$2.20 per ounce

Question

Deemer Corporation has provided the following data concerning its two products:  The profitability index for product T57U is closest to:
A)0.06 
B)0.20 
C)$11.00 per ounce 
D)$2.20 per ounce

Quizplus · Accepted Answer

Profitability Index = Incremental profit F1F1F1S1F1F1F10 Amount of constrained resource required = $17.60 F1F1F1S1F1F1F10 8 ounces = $2.20 per ounce

Deemer Corporation Has Provided the Following Data Concerning Its Two