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

question 51

Multiple Choice

Francke Corporation would like to determine the relative profitability of a number of jobs. For example, job H29O has revenues of $86,400 and avoidable costs of $69,120, resulting in an incremental profit of $17,280. The job requires 160 hours of the constrained resource. The job is responsible for 13% of the company's total profit for the period. What is the profitability index for job H29O?

• A)$108 per hour
• B)$540 per hour
• C)0.13
• D)0.20

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Definitions:

Norms

Socially accepted rules or standards that govern the behavior expected in a particular social group or culture.

Compliance

Compliance refers to the act of conforming to a request, demand, or regulation, often influenced by social pressure or authority.

Obedience

The act of following commands or instructions from an authority figure, even sometimes against one's own judgment.

Conformity

The act of aligning one's beliefs, attitudes, and behaviors with group norms or societal standards, often driven by the desire for social acceptance.