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

Multiple Choice

Sullen Corporation would like to determine the relative profitability of a number of jobs.For example,the revenue from Job M02P is $86,800 and its avoidable costs amount to $60,760,resulting in an incremental profit of $26,040.Furthermore,the job requires 280 hours of the constrained resource.What is the profitability index for job M02P?

A) 0.30
B) $310 per hour
C) $93 per hour
D) $217 per hour