Fabulous Fabricators needs to decide how to allocate space in its production facility this year. It is considering the following contracts:

a. What are the profitability indexes of the projects?

b. What should Fabulous Fabricators do?

\begin{tabular}{ccc} \hline Contract & NPV & Use of Facility \\ \hline A & $2.02 million & 100% \\ B & $0.99 million & 50% \\ C & $1.52 million & 50% \\ \hline \end{tabular}