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

Hamed Corporation would like to determine the relative profitability of the company's products for purposes of making volume trade-off decisions. The company has provided the following data for product U57S: $\begin{array}{lr}\text {Selling price }&\$ 28.00 \\\text {Variable cost per unit. }&16.80 \\\text {Unit contribution margin. }&\$ 11.20 \\\hline\text {Amount of the constrained resource used by the job }&&\text { 4 minutes }\\\text {Monthly unit sales. }&&\text {3,700 units }\end{array}$ What is the profitability index for product U57S?

A) $41,440
B) 0.40
C) $7.00 per minute
D) $2.80 per minute

Correct Answer:

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