Partial Operational Productivity Ashley Technology Inc. manufactures a scrambling device forcellular telephones. The device’s main component is a delicate part, CT140. CT140 is easily damaged and requires careful handling. Once damaged, it must be discarded. The firm hires only skilledlaborers to manufacture and install CT140; however, some are still damaged. Robotic instrumentsprocess all other parts. Ashley’s operating data for 2 years are as follows:2019 2018Units manufactured 750,000 1,000,000Number of CT140 used 900,000 1,050,000Number of direct labor hours spent 150,000 200,000Cost of CT140 per unit $156 $135Direct labor wage rate per hour $56 $62Required In your calculations, use 4 significant digits after the decimal point.1. Compute the partial operational productivity for both direct materials and direct labor for each of the2 years.2. On the basis of the partial operational productivity that you computed, what conclusions can you drawabout the firm’s productivity in 2019 relative to 2018?
Partial Operational Productivity Ashley Technology Inc. manufactures a scrambling device for
cellular telephones. The device’s main component is a delicate part, CT140. CT140 is easily damaged and requires careful handling. Once damaged, it must be discarded. The firm hires only skilled
laborers to manufacture and install CT140; however, some are still damaged. Robotic instruments
process all other parts. Ashley’s operating data for 2 years are as follows:
2019 2018
Units manufactured 750,000 1,000,000
Number of CT140 used 900,000 1,050,000
Number of direct labor hours spent 150,000 200,000
Cost of CT140 per unit $156 $135
Direct labor wage rate per hour $56 $62
Required In your calculations, use 4 significant digits after the decimal point.
1. Compute the partial operational productivity for both direct materials and direct labor for each of the
2 years.
2. On the basis of the partial operational productivity that you computed, what conclusions can you draw
about the firm’s productivity in 2019 relative to 2018?
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