The Profitability Index in a Volume Trade-Off Decision Should Be

Multiple Choice

The profitability index in a volume trade-off decision should be computed by:

A) dividing each product's contribution margin by the amount of the constrained resource used by the product.
B) dividing each product's contribution margin by its selling price.
C) dividing each product's selling price by the amount of the constrained resource used by the product.
D) dividing each product's variable cost by its selling price.