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Gutsen Communications Inc. manufactures a scrambling device for cellular phones. The main component of the scrambling device is a very delicate partDTV-12. DTV-12 requires careful
Gutsen Communications Inc. manufactures a scrambling device for cellular phones. The main component of the scrambling device is a very delicate partDTV-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 Gutsen Communications Inc. for 2018 and 2019 relative to the insertion of DTV-12. Round calculations to 2 significant digits. Number of phones manufactured Units of DTV-12 used Direct labor hours for DTV-12 insertion Total cost of DTV-12 units Direct labor wage rate per hour 2018 600,000 960,000 1,800 $1,443,750 $ 67 2019 780,000 1,072,500 2,600 $2,333,750 $ 82 The partial financial productivity ratio of DTV-12 in 2019 is: Multiple Choice 0.33. 0.42. 2.35. 3.66. 4.98
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