Ockerman Corporation Would Like to Determine the Relative Profitability of the Company's

Multiple Choice

Ockerman 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 A31N is $144.00 and its unit variable cost is $115.20.One unit of the product requires 6 ounces of the constrained resource.Monthly sales are 5,700 units.What is the profitability index for product A31N?

A) $24.00 per ounce
B) $164,160
C) 0.20
D) $4.80 per ounce