Broha Company manufactured 1,500 units of its only product during 2011.The inputs for this production are as follows:
450 pounds of Material A at a cost of $1.50 per pound
300 pounds of Material H at a cost of $2.75 per pound
300 direct labor hours at $20 per hour
The firm manufactured 1,800 units of the same product in 2010 with the following inputs:
500 pounds of Material A at a cost of $1.20 per pound
360 pounds of Material H at a cost of $2.50 per pound
400 direct labor hours at $18 per hour
The total productivity ratio in 2011 is: (round all calculations to two significant digits)
A) 0.20.
B) 0.70.
C) 1.00.
D) 1.43.
E) 5.00.
Correct Answer:
Verified
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