Prevost Chemicals manufactures an industrial solvent at its only processing plant. A liquid chemical and labor are the two primary inputs. All other resources are included in manufacturing overhead. The plant never has any work-in-process or finished goods inventories. Information from the previous four periods of production follows: Period 1Period 2Period 3Period 4Chemical input (gallons)125,000129,280128,000120,000Labor input (hours)12,50011,20015,00010,100Solvent sales (gallons)110,000113,120120,000103,020Average price of chemical per gallon$ 2.00$ 2.10$ 1.95$ 2.25Average wage rate per hour28.0026.0031.0034.00Average sales price per gallon10.2610.009.8010.60Manufacturing overhead (total)236,000245,312245,400243,080 Required:c. Compute the total factor productivity for the four periods. ### Task Instructions**Objective:** Compute the total factor productivity (TFP) for the four given periods.### Table OverviewThe table provided includes two columns:1. **Period** - Period 1 - Period 2 - Period 3 - Period 42. **Total Factor Productivity** - This column requires calculation and does not have pre-filled values.### NavigationButtons are available to switch between different requirement sections:- **Required B:** This is the current section, accessible via a blue button.- **Required C:** This section is grayed out and not currently accessible.The task involves calculating and entering the total factor productivity for each period into the corresponding fields in the table.

In order to calculated total factor productivity, we would use the formula,-Total Factor productivity= Output InputTotal factor productivity is the measure of of how efficiently inputs are used to produce outputs in a production process. In the above case the formula would be= Input = Chemical Input * Avg price + Labor input * Avg price + Manufacturing overhead Output = Solves sales * Avg price per sales Period Input Output 1(125000* 2) + (12500*28) + 236000= 836000110000* 10.26= 11286002(129280* 2.10) + (11200*26) + 245312= 808000113120* 10=11312003(128000* 1.95) + (15000*31) + 245400= 960000120000* 9.80=11760004(120000* 2.25) + (10100*34) + 243080= 856480103020* 10.60= 1092012TPF Period 1= 1128600/836000= 1.35TPF Period 2 = 1131200/ 808000= 1.40TPF Period 3= 1176000/ 960000= 1.22TPF Period 4 = 1092012/ 856480= 1.28Period11.35Period 21.40Period 31.22Period 41.28

Answered: Required A Required B Required C…

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...

See similar textbooks

	Period 1	Period 2	Period 3	Period 4
Chemical input (gallons)	125,000	129,280	128,000	120,000
Labor input (hours)	12,500	11,200	15,000	10,100
Solvent sales (gallons)	110,000	113,120	120,000	103,020
Average price of chemical per gallon	$ 2.00	$ 2.10	$ 1.95	$ 2.25
Average wage rate per hour	28.00	26.00	31.00	34.00
Average sales price per gallon	10.26	10.00	9.80	10.60
Manufacturing overhead (total)	236,000	245,312	245,400	243,080