Question: Gutsen Communications Inc. manufactures a scrambling device for cellul

Question

Question:

Gutsen Communications Inc. manufactures a scrambling device for cellular phones. The main component of the scrambling device is a very delicate part—DTV-12. DTV-12 requires careful handlings during manufacturing. Once damaged, the part must be discarded. Only skilled laborers are hired to manufacture and install DTV-12. Damages still occur, however. The following are the operating data of Gutsen Communications Inc. for 2015 and 2016 relative to the insertion of DTV-12. Round calculations to two significant digits.

The partial financial productivity ratio of DTV-12 in 2015 is:

Which of the following is correct?

0.33.

0.42.

2.35.

3.66.

4.98.

2015 600,000 960,000 2016 Number of phones manufactured Units of DTV-12 used Direct labor hours for DTV-12 insertion Total cost of DTV-12 units Direct labor wage rate per hour 1072,500 24XX 567 $82 The partial financial productivity ratio of DTV-12 In 2015 Is

Explanation / Answer

Number of phones manufactured / Total cost of DTV-12 Units

= 600,000/$1,443,750 = 0.42

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