Question: 10

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? a. What are the profitability indexes of the projects? The profitability index for contract A is (Round to two decimal places) The profitability index for contract B is (Round to fwo decimal places) The profitability index for contract C is (Round to two decimai places) b. What should Fabulous Fabricators do? (Select the best choice below.) A. Since the profitability index for C is the largest, it should choose C. B. Since the NPV of A is the largest, it should choose A C. It should take the two projects with the highest profitability indexes: C and A D. Since it has the capacity to do both B and C and NPVB+NPVC is greater than NPVA, it should do both B and C. eeds to decide how to allocate space in its production facility this year. It is considering the following contracts: ility indexes of the projects? us Fabricators do? ility indexes of the projects? Data table (Click on the following icon in order to copy its contents into a spreadsheet.)