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

question 54

Multiple Choice

Tevlin 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 H90X:
What is the profitability index for job H90X?

• A) $224 per hour
• B) $560 per hour
• C) $336 per hour
• D) 0.40

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Definitions:

Ultimate Consumers

Refers to the end-users or buyers who purchase products or services for personal use and not for manufacturing or resale.

Organizational Buyers

Businesses, governments, or institutions that purchase goods or services for use in the production of other goods and services, for resale, or for the organization’s operations.

Reseller Market

A market wherein goods or services are purchased for the purpose of resale rather than personal use.

Government Market

A market segment where the main customer is any government entity, purchasing products or services for public service.