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

question 49

Multiple Choice

Garbarino 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 C54V: $\begin{array}{lr}\text { Revenue.................. } & \$ 72,500 \\\text { Avoidable cost ......... } & \underline{58,000}\\\text { Incremental profit...... } & \underline{\$ 14.500}\end{array}$


$\begin{array}{llcc} \text {Amount of the constrained resource used by the job .................... } & \text {250 hours } &\\ \text { Percentage of the total company profit for the period from the job ... } &\text {\( 30 \% \) } &\\\end{array}$ What is the profitability index for job C54V?

• A)$290 per hour
• B)$58 per hour
• C)0.30
• D)0.20

---

Definitions:

Group Pressure

The psychological influence exerted by a group on individual members to align their behavior or beliefs with group norms.

Asch

Refers to Solomon Asch, known for his research on conformity, including his famous experiments that demonstrated the power of social pressure.

Milgram

Stanley Milgram was a psychologist best known for his controversial experiment on obedience to authority figures, conducted in the 1960s.

Compliance

The act of conforming to a request, command, or set of rules, often analyzed in social psychology to understand obedience and group behavior.