Katrina Design has decided to experiment with two alternative manufacturing approaches, identified as MF and LI, for producing men's fashions. The firm expects the total demand to be 20,000 suits. The manufacturing factors required to produce these outputs differ. The management estimates the required input resources using different manufacturing approaches are:

The cost of material per yard is $10
The cost of labor per hour is $26
Required
1. Compute the partial operational productivity ratios for each of the production approaches. Which approach would you select based on the partial operational productivity ratios?
2. Calculate the partial financial productivity ratios for each of the production approaches. Which approach would you select based on the partial financial productivity ratios?
3. Compute the total productivity ratios for each of the production approaches. Which approach would you select based on the total productivity ratios?

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Materials (yds.) Labor (hrs.) Materials (yds.) Labor (hrs.) MF LI 240,000 180,000 100,000 120,000