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What The partial operational productivity ratio of DTV is

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Reference no: EM132468021

Jim 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 handlings 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 Jim Communications Inc. for 2018 and 2019 relative to the insertion of DTV-12.

                                                                        2018                       2019

Number of phones manufactured          708,000                900,000

Units of DTV-12 used                          965,400             1,000,000

Direct labor hours for DTV-12 insertion   2,700                      3,590

Total cost of DTV-12 units               $1,448,250            $2,338,250

Direct labor wage rate per hour           $94.00                       $118

Question 1: The partial operational productivity ratio of DTV-12 in 2019 is: (Round calculations to 2 significant digits)

Reference no: EM132468021

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