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

Multiple Choice

Hamelinck Corporation would like to determine the relative profitability of a number of jobs. For example, the revenue from Job W06Z is $77,000 and its avoidable costs amount to $69,300, resulting in an incremental profit of $7,700. Furthermore, the job requires 220 hours of the constrained resource. What is the profitability index for job W06Z?

A) $315 per hour
B) $35 per hour
C) $350 per hour
D) 0.10