Katrina Design has decided to experiment with two alternative manufacturing approaches, identified as MF and LI, for producing men’s fashions. The firm expects the total demand to be 20,000 suits. Management estimates the required input resources using the different manufacturing approaches are: Direct Materials (yards) Direct Labor (hours) MF 240,000 100,000 LI 180,000 120,000 The cost of direct materials is $10 per yard; the cost of direct labor is $26 per hour. Required: 1. Compute the partial operational productivity ratios for each of the production approaches. 2. Calculate the partial financial productivity ratios for each of the production approaches. 3. Compute the total productivity ratios for each of the production approaches. (For all requirements, round your answers to 4 decimal places.)
Katrina Design has decided to experiment with two alternative manufacturing approaches, identified as MF and LI, for producing men’s fashions. The firm expects the total demand to be 20,000 suits. Management estimates the required input resources using the different manufacturing approaches are: Direct Materials (yards) Direct Labor (hours) MF 240,000 100,000 LI 180,000 120,000 The cost of direct materials is $10 per yard; the cost of direct labor is $26 per hour. Required: 1. Compute the partial operational productivity ratios for each of the production approaches. 2. Calculate the partial financial productivity ratios for each of the production approaches. 3. Compute the total productivity ratios for each of the production approaches. (For all requirements, round your answers to 4 decimal places.)
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
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Katrina Design has decided to experiment with two alternative manufacturing approaches, identified as MF and LI, for producing men’s fashions. The firm expects the total demand to be 20,000 suits. Management estimates the required input resources using the different manufacturing approaches are:
| Direct Materials (yards) |
Direct Labor (hours) |
||||||
| MF | 240,000 | 100,000 | |||||
| LI | 180,000 | 120,000 | |||||
The cost of direct materials is $10 per yard; the cost of direct labor is $26 per hour.
Required:
1. Compute the partial operational productivity ratios for each of the production approaches.
2. Calculate the partial financial productivity ratios for each of the production approaches.
3. Compute the total productivity ratios for each of the production approaches.
(For all requirements, round your answers to 4 decimal places.)
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