Gutsen Communications Inc

question 65

Multiple Choice

Gutsen Communications Inc.manufactures a scrambling device for cellular phones.The main component of the scrambling device is a very delicate part - DTV-12.DTV-12 requires careful handling during manufacturing.Once damaged,the part must be discarded.Only skilled laborers are hired to manufacture and install DTV-12.Damages still occur,however.The following are the operating data of Gutsen Communications Inc.for 2010 and 2011 relative to the insertion of DTV-12.Round calculations to two significant digits.
The partial direct labor operational productivity ratio for 2011 is:

• A)262 per unit.
• B)169 per unit.
• C)428 per unit.
• D)300 per unit.
• E)333 per unit.

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Definitions:

Held-to-Maturity Securities

Financial assets purchased with the intention of holding them until they mature; commonly bonds or other debt securities.

Dividend Yield

The ratio of a company's annual dividend payments to its share price, representing the return on investment a shareholder receives from dividends alone.

Preferred Stock

A type of stock that gives shareholders preference over common stockholders in the distribution of dividends and assets upon liquidation.

Common Stock

Equity securities representing ownership in a corporation, providing voting rights and sharing in the profits through dividends.