Information about Cheng Corporation is as follows:
$\begin{array}{lrr}
&20 \times 1 & 20 \times 2\
\text { Output (units) } & 14,000 & 15,000 \
\text { Selling price per unit } & \$ 16 & \$ 16 \
\text { Input quantities: } & & \
\quad \text { Materials (kg) } & 1,750 & 1,900 \
\text { Labour (hours) } & 1,400 & 1,525 \
\text { Input prices: } & & \
\quad \text { Materials (per kg) } & \$ 3 & \$ 4 \
\quad \text { Labour (per hour) } & \$ 6 & \$ 7
\end{array}$
-Refer to the figure.What is the partial operational measure for power for 20X2?
A)4.00
B)3.69
C)1.15
D)1.00

Question

Quizplus · Accepted Answer

The partial operational measure for power for 20X2 can be calculated as the ratio of the output in 20X2 to the output in 20X1, which is $ \frac{15,000}{14,000} = 1.0714 $. To find the partial measure for power, we also need to consider the input quantities and prices. The input in terms of cost for materials and labor in 20X1 is $ (1,750 \times \$3) + (1,400 \times \$6) = \$5,250 + \$8,400 = \$13,650 $. For 20X2, it is $ (1,900 \times \$4) + (1,525 \times \$7) = \$7,600 + \$10,675 = \$18,275 $. The ratio of input costs from 20X2 to 20X1 is $ \frac{\$18,275}{\$13,650} = 1.3385 $. The partial operational measure for power is the ratio of the output ratio to the input cost ratio, which is $ \frac{1.0714}{1.3385} = 0.8005 $. However, none of the provided options exactly match this calculation, suggesting a need to re-evaluate the approach based on the given options. The correct approach involves comparing the efficiency or productivity changes year over year, but without the exact formula or method specified in the options, the calculation provided doesn't directly lead to one of the given choices. Given this, the correct answer is based on understanding the concept of operational power, which typically involves comparing output to input, but the specific numbers provided don't match the expected calculation process. Therefore, the explanation provided doesn't align with the given choices, indicating a misunderstanding in the calculation process for the partial operational measure for power based on the provided data.

Information About Cheng Corporation Is as Follows -Refer to the Figure