Kabir’s Ceramics spent 3000 Taka on a new kiln last year, in the belief that it would cut energy usage 25% over the old kiln. This kiln is an oven that turns “green ware” into finished pottery. Kabir is concerned that the new kiln requires extra labour hours for its operation. Kabir wants to check the energy savings of the new oven and also to look at other measures of their productivity to see if the change really was beneficial. Kabir has the following data to work with: Last Year This year Production (finished units) 4 000 No change Green ware(kgs) 5 000 5 000 Labour (hours) 350 300 Capital (MU) 15 000 3000 Taka more than last year Energy (kWh) 4 000 25 % less than last year 1.Analyse the productivity percentage change for Labour, Capital and Energy and justify the whether the investment decisions (you agree or not )
Kabir’s Ceramics spent 3000 Taka on a new kiln last year, in the belief that it would cut energy usage 25% over the old kiln. This kiln is an oven that turns “green ware” into finished pottery. Kabir is concerned that the new kiln requires extra labour hours for its operation. Kabir wants to check the energy savings of the new oven and also to look at other measures of their productivity to see if the change really was beneficial. Kabir has the following data to work with:
|
|
Last Year |
This year |
|
Production (finished units) |
4 000 |
No change |
|
Green ware(kgs) |
5 000 |
5 000 |
|
Labour (hours) |
350 |
300 |
|
Capital (MU) |
15 000 |
3000 Taka more than last year |
|
Energy (kWh) |
4 000 |
25 % less than last year |
1.Analyse the productivity percentage change for Labour, Capital and Energy and justify the whether the investment decisions (you agree or not )
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
