At the End of 2018, Diatomic Company Implemented a New

question 17

Multiple Choice

At the end of 2018, Diatomic Company implemented a new labor process and redesigned its product with the expectation that input usage efficiency would increase. Now, at the end of 2019, the president of the company wants an assessment of the changes on the company's productivity. The data needed for the assessment are as follows: $\begin{array}{lrr}&2018&2019\text { Output } & 45,000 & 54,000 \\\text { Output prices } & \$ 10 & \$ 10 \\\text { Materials (lbs.) } & 22,500 & 22,950 \\\text { Materials unit price } & \$ 3 & \$ 4 \\\text { Labor (hrs.) } & 18,000 & 16,875 \\\text { Labor rate per hour } & \$ 5 & \$ 5 \\\text { Power (kwh) } & 11,250 & 14,625 \\\text { Price per kwh } & \$ 2 & \$ 3\end{array}$ What is the partial operational measure for labor for 2018?

• A)2.50
• B)3.20
• C)1.00
• D)1.25

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Definitions:

Seminiferous Tubules

Narrow, coiled tubules within the testes where spermatozoa are produced.

Inguinal Canal

An anatomical passage in the lower anterior abdominal wall, which in men allows the spermatic cord and in women the round ligament of the uterus to pass.

Testes

The male reproductive glands responsible for producing sperm and male sex hormones, particularly testosterone.

Scrotum

The sac of skin housing the testicles, regulating their temperature for sperm production.