A U.S. manufacturing company operating a subsidiary in an LDC (less-developed country) shows the following results: U.S. LDCSales (units) 100,000 20,000Labor (hours) 20,000 15,000Raw materials (currency) $20,000 FC 20,000Capital equipment (hours) 60,000 5,000a. a. Calculate partial labor and capital productivity i gures for the parent and subsidiary. Do the results seem confusing?b. Compute the multifactor productivity i gures for labor and capital together. Do the results make more sense?c. Calculate raw material productivity i gures (units/$ where $1 5 FC 10). Explain why these i gures might be greater in the subsidiary.
A U.S. manufacturing company operating a subsidiary in an LDC (less-developed country) shows the following results: U.S. LDCSales (units) 100,000 20,000Labor (hours) 20,000 15,000Raw materials (currency) $20,000 FC 20,000Capital equipment (hours) 60,000 5,000a. a. Calculate partial labor and capital productivity i gures for the parent and subsidiary. Do the results seem confusing?b. Compute the multifactor productivity i gures for labor and capital together. Do the results make more sense?c. Calculate raw material productivity i gures (units/$ where $1 5 FC 10). Explain why these i gures might be greater in the subsidiary.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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| A U.S. manufacturing company operating a subsidiary in an LDC (less-developed country) shows the following results: U.S. LDC Sales (units) 100,000 20,000 Labor (hours) 20,000 15,000 Raw materials (currency) $20,000 FC 20,000 Capital equipment (hours) 60,000 5,000a. a. Calculate partial labor and capital productivity i gures for the parent and subsidiary. Do the results seem confusing? b. Compute the multifactor productivity i gures for labor and capital together. Do the results make more sense? c. Calculate raw material productivity i gures (units/$ where $1 5 FC 10). Explain why these i gures might be greater in the subsidiary. |
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