P12-43 (similar to) E Question Help Gammaro Company manufactures wallets from fabric. In 2016, Gammaro made 2,295,000 wallets using 1,836,000 yards of fabric. In 2016, Gammaro has capacity to make 2,808,000 wallets and incurs a cost of $9,828,000 for this capacity. In 2017, Gammaro plans to make 2,386,800 wallets, make fabric use more efficient, and reduce capacity. Suppose that in 2017 Garmaro rmakes 2,386,800 wallets, uses 1,530,000 yards of fabric, and reduces capacity to 2,340,000 wallets at a cost of S7,956,000 Read the recuirements. Requirement 1. Calculate the partial-productivity ratios for materials and conversion (capacity costs) for 2017, and compare them to a benchmark for 2016 calculated based on 2017 output. To assist you, use the popup to kdentify the various components of the formulas. (Click to view the components you will use in your formulas.) Begin by deteining the formula for the direct meterials partial-productivity ratio in 2017, then complete the calculation. (Round the ratio to three decirmal places.) 2017 Direct materials partial productivity Reference Requirements A Capacity units from 2016 to produce 2017 Capacity units in 2016 Capacity units in 2017 Oty of output produped in 2016 E Qty of output produced in 2017 1. Calculate the partial-productivity ratios for materia s and conversion icapacity costs) for 2017, and compare them to a benchmark for 2016 calculated based on 2017 output. B F Yards of direct materials from 2016 to produce 2017 output C G Yards of direct materials used in 2016 2. How can Gammaro Company use the information from the partial-productivity calculations? D H Yards of direct materials used in 2017 Print Done Print Done Choose from any drop-down list and then click Check Answer Clear All Check Answer remaining