a) Last week employees at Bluegill produced 46 chairs after working a total of 200 hours. Of the 46 chairs produced, 12 were damaged due to a problem with the new sanding machine. The damaged chairs can be discounted and sold for K250 each. The undamaged chairs are sold to a department store retail chain for $700 each. (i) What was the labor productivity ratio for last week? (ii) If labor productivity was $150 in sales per hour the previous week, what was the change in labor productivity as a percentage? b) In the bakery, the design capacity is 30 pies per day and effective capacity is 20 pies per day. Currently, the bakery is producing 27 pies per day. What is the bakery’s capacity utilization relative to both design and effective capacity?
a) Last week employees at Bluegill produced 46 chairs after working a total of 200 hours. Of the 46 chairs produced, 12 were damaged due to a problem with the new sanding machine. The damaged chairs can be discounted and sold for K250 each. The undamaged chairs are sold to a department store retail chain for $700 each. (i) What was the labor productivity ratio for last week? (ii) If labor productivity was $150 in sales per hour the previous week, what was the change in labor productivity as a percentage? b) In the bakery, the design capacity is 30 pies per day and effective capacity is 20 pies per day. Currently, the bakery is producing 27 pies per day. What is the bakery’s capacity utilization relative to both design and effective capacity?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Question
a) Last week employees at Bluegill produced 46 chairs after working a total of 200
hours. Of the 46 chairs produced, 12 were damaged due to a problem with the
new sanding machine. The damaged chairs can be discounted and sold for K250
each. The undamaged chairs are sold to a department store retail chain for $700
each.
(i) What was the labor productivity ratio for last week?
(ii) If labor productivity was $150 in sales per hour the previous week, what
was the change in labor productivity as a percentage?
b) In the bakery, the design capacity is 30 pies per day and effective capacity is 20
pies per day. Currently, the bakery is producing 27 pies per day. What is the
bakery’s capacity utilization relative to both design and effective capacity?
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