a. Which factory has the highest labor productivity? b. Which factory has the highest multi-factor productivity? c. Give two examples reasons that explains productivity difference between these factories.

Practical Management Science
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ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
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Q3) The Travel Luggage Company "LugPro" designs and manufactures several different
styles of soft- and hardcover luggage, briefcases, hanging bags, and purses. The company
has production facilities in two locations. Average monthly cost data and output levels are
as follows.
Dubai
Abu Dhabi
Finished Goods
240000
300000
Labor Cost
32000
35000
Material Cost
25000
30000
Energy Cost
1000
1500
Revt Cost
1000
2000
a. Which factory has the highest labor productivity?
b. Which factory has the highest multi-factor productivity?
c. Give two examples reasons that explains productivity difference between these factories.
Transcribed Image Text:Q3) The Travel Luggage Company "LugPro" designs and manufactures several different styles of soft- and hardcover luggage, briefcases, hanging bags, and purses. The company has production facilities in two locations. Average monthly cost data and output levels are as follows. Dubai Abu Dhabi Finished Goods 240000 300000 Labor Cost 32000 35000 Material Cost 25000 30000 Energy Cost 1000 1500 Revt Cost 1000 2000 a. Which factory has the highest labor productivity? b. Which factory has the highest multi-factor productivity? c. Give two examples reasons that explains productivity difference between these factories.
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