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Gutsen Communications Inc. manufactures a scrambling device for cellular phones.

ID: 3152964 • Letter: G

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.

2015 2016 Number of phones manufactured 600,000 780,000 Units of DTV-12 used 960,000 1,072,500 Direct labor hours for DTV-12 insertion 1,800 2,600 Total cost of DTV-12 units $1,443,750 $2,333,750 Direct labor wage rate per hour $67 $82

Explanation / Answer

the operational productivity is:

year 2015: 60000/1800:333.33

year 2016: 78000/2600:300

so the ratio for 2015 =333.33/300=1.11 so the 2015 was more productiv than 2016 they made 0.11 more than 2016