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

question 57

Multiple Choice

Hamelinck Corporation would like to determine the relative profitability of a number of jobs. For example, the revenue from Job W06Z is $77,000 and its avoidable costs amount to $69,300, resulting in an incremental profit of $7,700. Furthermore, the job requires 220 hours of the constrained resource. What is the profitability index for job W06Z?

• A)$315 per hour
• B)$35 per hour
• C)$350 per hour
• D)0.10

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Definitions:

Dentin

Dentin is a hard, dense tissue forming the bulk of a tooth beneath the enamel and above the pulp.

Pylorus

The region of the stomach that connects to the duodenum of the small intestine, acting as a valve to control food passage.

Stomach

An organ in the digestive system that breaks down food using acids and enzymes, preparing it for further digestion in the intestines.

Jejunum

The middle section of the small intestine in humans and most higher vertebrates, responsible for the absorption of nutrients.