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

question 10

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Dorich 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 P86M: Dorich 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 P86M:   The amount of the constrained resource used by the job is 340 hours. What is the profitability index for job P86M? A) $87 per hour B) $290 per hour C) $203 per hour D) 0.30 The amount of the constrained resource used by the job is 340 hours. What is the profitability index for job P86M?

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Definitions:

Estimated Returns Inventory

Inventory that is reserved or set aside by a company, based on historical data, to account for future product returns from customers.

Physical Inventory

The process of counting the actual items in stock to verify records and ensure accuracy in inventory levels.

Asset Turnover Ratio

A financial metric that measures the efficiency of a company in using its assets to generate revenue.

Average Total Assets

A measure used in financial analysis, calculated as the average of a company's total assets at the beginning and end of a period, providing insight into the investment in assets.

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