%) P12-43 (similar to) Question Help Gessner Company manufactures wallets from fabric. In 2016, Gessner...

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%) P12-43 (similar to) Question Help Gessner Company manufactures wallets from fabric. In 2016, Gessner made 2,160,000 wallets using 1,600,000 yards of fabric. In 2016, Gessner has capacity to make 2,448,000 wallets and incurs a cost of $8,568,000 for this capacity. In 2017, Gessner plans to make 2,203,200 wallets, make fabric use more efficient, and reduce capacity. Suppose that in 2017 Gessner makes 2,203,200 wallets, uses 1,440,000 yards of fabric, and reduces capacity to 2,295,000 wallets at a cost of $7,803,000. Read the requirements. 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 identify the various components of the formulas. (Click to view the components you will use in your formulas.) Begin by determining the formula for the direct materials partial-productivity ratio in 2017, then complete the calculation. (Round the ratio to three decimal places.) E H = 2017 Direct materials partial productivity 1 = wallets per yard 6 of 6 (3 complete) HWS to) A Reference cost of $8 ures wallets from fabric. In 2016, Ge ,200 wallets, make fabric use more er makes 2,203,200 wallets, uses 1 A B C D Capacity units from 2016 to produce 2017 Capacity units in 2016 Capacity units in 2017 Qty of output produced in 2016 E Qty of output produced in 2017 F Yards of direct materials from 2016 to produce 2017 output G Yards of direct materials used in 2016 H Yards of direct materials used in 2017 e partial-productivity ratios for mater to identify the various components inents you will use in your formulas. Print Done mula for the direct materials partial-productivity ratio i 1 H = 2017 Direct Requirements 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. 2. How can Gessner Company use the information from the partial-productivity calculations? Print Done

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