Broha Company Manufactured 1,500 Units of Its Only Product During

question 17

Multiple Choice

Broha Company manufactured 1,500 units of its only product during 2019. 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 2018 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
Round all calculations to 2 significant digits.
The partial operational productivity of Material A in 2018 is:

• A) 0.28.
• B) 0.33.
• C) 3.00.
• D) 3.33.
• E) 3.60.

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Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity available to run its operations.

Beginning

The starting point or initial state of an event, process, or accounting period.

Released

Typically refers to products, information, or software being made available to the public or to a specific group.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return.