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

question 3

Multiple Choice

Bruck 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 D25Y: What is the profitability index for job D25Y?

• A)$108 per hour
• B)0.20
• C)$540 per hour
• D)0.28

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Definitions:

Component Companies

Individual companies or entities that are part of a larger corporate structure and contribute to the consolidated financial statements.

Intra-Entity Transfer

The movement of goods, services, or funds between different parts of the same organization.

Consolidated Net Income

The total net income of a parent company and its subsidiaries after eliminating intercompany transactions.

Gain Recognized

The process of recording in financial statements the profit earned from the sale or exchange of an asset, reflecting an increase in economic benefits.