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

Multiple Choice

Heilmann Corporation would like to determine the relative profitability of a number of jobs.For example,job S96T has revenues of $68,000 and avoidable costs of $54,400,resulting in an incremental profit of $13,600.The job requires 170 hours of the constrained resource.The job is responsible for 10% of the company's total profit for the period.What is the profitability index for job S96T?

A) 0.20
B) $400 per hour
C) $80 per hour
D) 0.10