Katrina Design has decided to experiment with two alternative manufacturing approaches, identified as MF and LI, for producing mens fashions. The firm expects the total demand to be 39,000 suits. Management estimates the required input resources using the different manufacturing approaches are:

	Direct Materials (yards)				Direct Labor (hours)
MF		259,000				119,000
LI		199,000				139,000

The cost of direct materials is $10 per yard; the cost of direct labor is $26 per hour.

Required:

1. Compute the partial operational productivity ratios for each of the production approaches.

2. Calculate the partial financial productivity ratios for each of the production approaches.

3. Compute the total productivity ratios for each of the production approaches.

(For all requirements, round your answers to 4 decimal places.)

1. Operational partial productivity MF Direct materials 0.1506 Direct labor 0.3277 LI 0.1960 0.2806 2. Financial partial productivity Direct materials 0.0151 Direct labor 3. Total productivity