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

Multiple Choice

Wang Corporation would like to determine the relative profitability of a number of jobs. For example, the revenue from Job Q86D is $105,300 and its avoidable costs amount to $63,180, resulting in an incremental profit of $42,120. Furthermore, the job requires 270 hours of the constrained resource. What is the profitability index for job Q86D?

A) 0.40
B) $234 per hour
C) $156 per hour
D) $390 per hour