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

question 34

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.
In 2018, the partial financial productivity of Material A is:

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

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Definitions:

Accounts Receivables

Accounts Receivables are amounts owed to a business by its customers for goods or services delivered on credit, representing assets on the balance sheet.

Asset Turnover Ratio

A financial metric that measures the efficiency of a company's use of its assets to generate sales revenue, calculated as sales divided by total assets.

Rate of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment's initial cost.

Acid Test Ratio

A financial metric used to evaluate a company's short-term liquidity position by comparing its most liquid assets (excluding inventory) to its current liabilities.