Cindy Jo's Hair Salon is concerned about its rising costs of supplies, energy, and labor, so it is considering investing in better equipment, which hopefully will reduce the time required to perform most hairstyles as well as result in better perceived quality by its customers. It predicts that the added investment will increase output levels as well as reduce energy costs, since some of the new equipment (hair dryers) use less electricity. Inputs and Outputs Current (this year) Expected (next year) Hairstyles per week 280 320 Labor costs per week $940 $985 Energy costs per week $400 $365 Material costs per week $320 $340 Capital investment $0 $11,000 Using the given information, determine the current and expected single-factor and total productivity measures. Do not round intermediate calculations. Round your answers to three decimal places. Productivity Current (this year) Expected (next year) Labor haircuts/dollar haircuts/dollar Energy haircuts/dollar haircuts/dollar Material haircuts/dollar haircuts/dollar Total haircuts/dollar haircuts/dollar What is the percentage change in total productivity? Do not round intermediate calculations. Round your answer to two decimal places.

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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Cindy Jo's Hair Salon is concerned about its rising costs of supplies, energy, and labor, so it is considering investing in better equipment, which hopefully will reduce the time required to perform most hairstyles as well as result in better perceived quality by its customers. It predicts that the added investment will increase output levels as well as reduce energy costs, since some of the new equipment (hair dryers) use less electricity.

Inputs and Outputs	Current (this year)	Expected (next year)
Hairstyles per week		280	320
Labor costs per week		$940	$985
Energy costs per week		$400	$365
Material costs per week		$320	$340
Capital investment		$0	$11,000

Using the given information, determine the current and expected single-factor and total productivity measures. Do not round intermediate calculations. Round your answers to three decimal places.

Productivity	Current (this year)	Expected (next year)
Labor	haircuts/dollar	haircuts/dollar
Energy	haircuts/dollar	haircuts/dollar
Material	haircuts/dollar	haircuts/dollar
Total	haircuts/dollar	haircuts/dollar

What is the percentage change in total productivity? Do not round intermediate calculations. Round your answer to two decimal places.

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