Ebright Corporation Would Like to Determine the Relative Profitability of the Company's

question 27

Multiple Choice

Ebright Corporation would like to determine the relative profitability of the company's products for purposes of making volume trade-off decisions. For example, the selling price of product H25Z is $50.00 and its unit variable cost is $30.00. One unit of the product requires 2 ounces of the constrained resource. Monthly sales are 6,300 units. What is the profitability index for product H25Z?

• A)$126,000
• B)$25.00 per ounce
• C)0.40
• D)$10.00 per ounce

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Definitions:

Standard Time

A predetermined or established duration for performing a task, used for planning, scheduling, and evaluating work efficiency.

Normal Time

usually refers to the standard duration allocated to complete a task or process under typical conditions.

Fatigue Allowances

Adjustments made in the scheduling or workload to account for worker fatigue, aimed at maintaining efficiency and preventing accidents.

Normal Time

The estimated duration to complete a task under normal conditions, taking into account average delays and productivity levels.