Omar Industries maintains production facilities in several locations around theglobe. Average monthly cost data and output levels are as follows.a. Calculate the labour productivity of each facility.b. Calculate the multifactor productivity of each facility.c. If Omar needed to close one of the plants, which one would you choose?Units (in 000s) Montreal Frankfurt Guadalajara BeijingFinished goods10,00012,0005,000 8,000Work-in-process1,0002,2003,000 6,000Costs (in 000s)Montreal Frankfurt Guadalajara BeijingLabour costs$3,500 $4,200$2,500 $800Material costs$3,500$3,000$2,000 $2,500Energy costs$1,000 $1,500$1,200 $800Transportation costs$250$2,500$2,000 $5,000Overhead costs$1,200$3,000$2,500 $500

LABOR PRODUCTIVITY= OUTPUT/LABOR COSTS MULTIFACTOR PRODUCTIVITY =…

Answered: a. Calculate the labour productivity of…

Practical Management Science

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ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

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Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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a. Calculate the labour productivity of each facility. b. Calculate the multifactor productivity of each facility. c. If Omar needed to close one of the plants, which one would you choose? Units (in 000s) Montreal Frankfurt Guadalajara Bejing