Erwin Co.provided the following information for a selected production factor: $\begin{array}{ll}
\text { Budgeted production } & 12,000 \text { units } \
\text { Actual production } & 11,000 \text { units } \
\text { Budgeted input } & 12,000 \text { gallons } \
\text { Actual input } & 10,800 \text { gallons }
\end{array}$ The actual partial operational productivity ratio of the production factor is (round to two significant digits):
A)0.92 units per gallon.
B)1.00 units per gallon.
C)1.01 units per gallon.
D)1.02 units per gallon.
E)1.11 units per gallon.

Question

Quizplus · Accepted Answer

The actual partial operational productivity ratio is calculated by dividing the actual production by the actual input, which is $11,000 \text{ units} / 10,800 \text{ gallons} = 1.0185$, rounded to two significant digits gives 1.02 units per gallon.

Erwin CoProvided the Following Information for a Selected Production Factor