Varceles 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. Management estimates the required input resources using different manufacturing approaches are:

 

Number of Suits =	20,000
	Materials (yds.)	Labor (hrs.)
Materials (yds.) Labor (hrs.)
MF	300,000	100,000
LI	200,000	120,000
The cost of material per yard is	$8
The cost of labor per hour is	$25

The cost of materials is $8 per yard; the cost of labor is $25 per hour.

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 productivityratios?

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Required 1. Compute the partial operati onal productivity ratios for each of the production approaches. Which approach would you 2. Calculate the partial financial productivity ratios for each of the production approaches. Which approach would you 3. Compute the total productivity ratios for each of the production approaches. Which approach would you select based select based on the partial operati onal productivity ratios? select bas ed on the partial financi al productivity ratios? on the total productivity ratios?