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

Multiple Choice

Garbarino Corporation would like to determine the relative profitability of a number of jobs. For illustration purposes, the company has provided the following data for job C54V: $\begin{array}{lr}\text {Revenue }&\$72,500\\\text {Avoidable cost }&58,000\\\text { Incremental profit}&\$14,500\\\\\text {Amount of the constrained resource used by the job. }&\text {250 hours }\\\text { Percentage of the total company profit for the period from the job}&30\%\\\end{array}$
What is the profitability index for job C54V?

A) $290 per hour
B) $58 per hour
C) 0.30
D) 0.20