Data for a Factory -
What Is the TA Ratio for Product a

question 7

Multiple Choice

Data for a factory
$\begin{array}{ll}\text { Total factory cost } & £ 10,000 \\\text { Total time au ailable on key resource (hours) } & 2,500 \\\text { Contribution per unit product A } & £ 34.00 \\\text { Contribution per unit product B } & £ 30.00 \\\text { Contribution per unit product C } & £ 22.00 \\\text { Contribution per unit product D } & £ 20.00 \\\text { Hours required product A } & 12.0 \\\text { Hours required product B } & 6.0 \\\text { Hours required product C } & 6.0 \\\text { Hours required product D } & 8.0\end{array}$

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What is the TA ratio for product A

• A)£0.625
• B)£0.917
• C)£1.250
• D)£0.708

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Definitions:

Rate of Inflation

The percentage increase in the general level of prices for goods and services in an economy over a given period.

Lagging Economic Indicator

Refers to statistics that tend to change after the economy has already begun to follow a particular trend, and are used to confirm patterns seen in leading indicators.

Unemployment Rate

The proportion of the workforce that is unemployed and actively looking for work.

Price Level

An index indicating the general pricing trends in an economy, reflecting the cost living and purchasing power.