Question Cornerstone  Exercise  18-29  CONSUMPTION RATIOS Rico Company produces two types of boots: cowboy and cowgirl. There are four activ- ities associated with the two products. Drivers for the four activities are as follows: Cowboy             Cowgirl   Cutting hours 1,400 2,600 Assembly hours 1,000 1,500 Inspection hours 450 1,050 Rework hours 50 150         Required: 1.     Calculate the consumption ratios for the four drivers. 2.     Is there evidence of product diversity? Explain.  

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  Cornerstone  Exercise  18-29  CONSUMPTION RATIOS  Rico Company produces two types of boots: cowboy and cowgirl. There are four activ- ities associated with the two products. Drivers for the four activities are as follows:  Cowboy             Cowgirl                    Cutting hours         1,400         2,600             Assembly hours         1,000         1,500             Inspection hours         450         1,050             Rework hours         50         150                              Required:  1.     Calculate the consumption ratios for the four drivers.  2.     Is there evidence of product diversity? Explain.     
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