The Profitability Index in a Volume Trade-Off Decision Should Be

question 45

Multiple Choice

The profitability index in a volume trade-off decision should be computed by:

• A)dividing each product's contribution margin by the amount of the constrained resource used by the product.
• B)dividing each product's contribution margin by its selling price.
• C)dividing each product's selling price by the amount of the constrained resource used by the product.
• D)dividing each product's variable cost by its selling price.

---

Definitions:

College Success

Achieving educational goals and objectives in a college environment, often measured by academic performance, skill development, and personal growth.

Recall Column

A method or feature in educational or informational spaces used to help remember and review previously learned information.

Study Tool

Resources or strategies used to enhance learning, understanding, or memorization of educational content.

Cheat

To act dishonestly or unfairly in order to gain an advantage.