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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

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter5: Business And Economic Forecasting
Section: Chapter Questions
Problem 1.1CE
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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) 1000 1000 300 275 50 45 Capital invested ($) Energy (Btu) 10,000 11,000 3000 2850 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: $0.05 per Btu. Calculate the percent change in productivity for one month last year versus one month this year, on a multifactor basis with dollars as the common denominator. Activate
Transcribed Image Text:3. Company A produces bearing balls. With recent increase in cost and flat sale, the company want to increase the efficiency. The company manager wants to know about the productivity. Historic data representing a month from last year and an equivalent month this year are shown in below table. Last year Now Units produced Labor (hours) Resin (kg) 1000 1000 300 275 50 45 Capital invested ($) Energy (Btu) 10,000 11,000 3000 2850 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. Activate
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