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

question 43

Multiple Choice

Mccraig Corporation would like to determine the relative profitability of a number of jobs. For example, job S35A has revenues of $52,000 and avoidable costs of $36,400, resulting in an incremental profit of $15,600. The job requires 260 hours of the constrained resource. The job is responsible for 8% of the company's total profit for the period. What is the profitability index for job S35A?

• A) $60 per hour
• B) $200 per hour
• C) 0.30
• D) 0.08

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Definitions:

Biochemical Reactions

Complex chemical processes occurring within living organisms, fundamental to life's processes like metabolism and enzyme function.

Retain Dyes

The ability of certain cells or structures to hold specific dyes during staining, a technique used in microscopy to enhance visibility and differentiation.

Gastroenteritis

Inflammation of the stomach and intestines, typically caused by infection leading to vomiting and diarrhea.

Tuberculosis

A contagious bacterial infection primarily affecting the lungs, marked by symptoms such as cough, fever, and weight loss.