3. Company A produces bearing balls. With recent increase in cost and flatsale, the company want to increase the efficiency. The company managerwants to know about the productivity. Historic data representing a monthfrom last year and an equivalent month this year are shown in below table.Last yearNowUnits producedLabor (hours)Resin (kg)100010003002755045Capital invested ($)Energy (Btu)10,00011,00030002850a. Calculate productivity for each category (single factor productivity)and percentage of productivity change for each category.b. Assume that the company determines cost to be as follows:Labor: $10/hour• Resin: $5/kgCapital expense: 1% per month of investment.Energy: $0.05 per Btu.Calculate the percent change in productivity for one month lastyear versus one month this year, on a multifactor basis withdollars as the common denominator.Activate

Productivity is calculated by Single Factor Productivity as Productivity = Output/Inputs…

3. Company A produces bearing balls. With recent increase in cost and flat sale, the company want to increase the efficiency. The company manager wants to know about the productivity. Historic data representing a month from last year and an equivalent month this year are shown in below table. Last year Now Units produced Labor (hours) Resin (kg) Capital invested ($) Energy (Btu) 1000 1000 300 275 50 45 10,000 11,000 2850 3000 a. Calculate productivity for each category (single factor productivity) and percentage of productivity change for each category. b. Assume that the company determines cost to be as follows: • Labor: $10/hour Resin: $5/kg Capital expense: 1% per month of investment. Energy: $0.05 per Btu. Calculate the percent change in productivity for one month last year versus one month this year, on a multifactor basis with dollars as the common denominator. Activ

3. Company A produces bearing balls. With recent increase in cost and flat sale, the company want to increase the efficiency. The company manager wants to know about the productivity. Historic data representing a month from last year and an equivalent month this year are shown in below table. Last year Now Units produced Labor (hours) Resin (kg) Capital invested ($) Energy (Btu) 1000 1000 300 275 50 45 10,000 11,000 2850 3000 a. Calculate productivity for each category (single factor productivity) and percentage of productivity change for each category. b. Assume that the company determines cost to be as follows: • Labor: $10/hour Resin: $5/kg Capital expense: 1% per month of investment. Energy: $0.05 per Btu. Calculate the percent change in productivity for one month last year versus one month this year, on a multifactor basis with dollars as the common denominator. Activ

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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