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

question 64

Multiple Choice

Dombrowski 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 V48Q is $150.00, its unit variable cost is $135.00, and its unit contribution margin is $15.00. One unit of the product requires 6 minutes of the constrained resource. Monthly sales are 5,800 units. What is the profitability index for product V48Q?

• A) $2.50 per minute
• B) 0.10
• C) $25.00 per minute
• D) $87,000

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Definitions:

TV Privileges

The allowance or permission given to individuals, often children, to watch television as a form of reward or within set limits.

Parent's Involvement

The active participation and engagement of parents in their children's education and learning process, ranging from attending school meetings to helping with homework.

Homework

A set of tasks assigned by teachers to students to be completed outside the classroom.

TV Viewing

The act of watching television content, which can influence behavior, attitudes, and perceptions through exposure to various messages.