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 DTV12 Round calculations to two significant digits. 2015 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 2016 780,000 1,072,500 2,600 $1,443,750 $2,333,750 $82 1,800 $67 The partial financial productivity ratio of DTV-12 in 2015 is O 0.33. 。042. O 235. 3.66 O4.98

Answer 1

Calculation of Partial financial Productivity Ratio :-

= No. of Phones Manufactured / Total Cost of DTV - 12 units

= 600000 / $1443750

= 0.4156 or 0.42