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

question 20

Multiple Choice

Reetz Corporation would like to determine the relative profitability of the company's products for purposes of making volume trade-off decisions. For illustration, the company has provided the following data for product A25H: $\begin{array}{lr}\text {Selling price }&\$ 58.00 \\\text {Variable cost per unit }&\$ 46.40 \\\text { Amount of the constrained resource required by one unit.}&\text {2 grams }\\\text {Monthly unit sales }&\text {4,100 units }\\\end{array}$
What is the profitability index for product A25H?

• A)$47,560
• B)$29.00 per gram
• C)$5.80 per gram
• D)0.20

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Definitions:

Sensory Skills

The abilities related to the detection, identification, and interpretation of sensory information from the environment.

Cooking Food

The process of preparing food by combining, mixing, and heating ingredients, which can increase digestibility and reduce foodborne pathogens.

Caloric Gain

The increase in calories obtained and absorbed from food and beverages, contributing to energy resources or weight gain.

Foraging

The act of searching for and exploiting food resources by animals, including humans.