Information About Hinze Corporation Is as Follows -Refer to the Figure

question 134

Multiple Choice

Information about Hinze Corporation is as follows:
$$\begin{array} { l r r } &20 \times 1&20 \times 2\\\text { Output (urits) } & 40,000 & 42,000 \\\text { Selling price per unit } & \$ 25 & \$ 25 \\\text { Input quantites: } & & \\\text { Materials (kg) } & 2,000 & 2,000 \\\text { Labour (hours) } & 1,600 & 1,625 \\\text { Input prices: } & & \\\text { Materials (per kg) } & \$ 5.00 & \$ 5.50 \\\text { Labour (per hour) } & 500 & \$ 7.50\end{array}$$
-Refer to the figure.What is the materials productivity ratio for 20X1?

• A)28
• B)25
• C)20
• D)16

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Definitions:

Substitutes Goods

Products or services that can replace or be used in place of another to fulfill the same need or desire.

Complementary Goods

Products or services that are consumed together because the use of one enhances the use or value of the other.

Income Elasticity

A measure of how much the demand for a good or service changes in response to a change in consumers' income.

Cross Elasticity of Demand

A measure of how the quantity demanded of one good responds to a change in price of another good, indicating substitutes or complements.