Lillian Fok is president of Lakefront Manufacturing, a producer of bicycle tires. Fok makes 1,000 tires per day with the following resources: Labor: 400 hours per day @ $12.00 per hour Raw Material: 20,000 pounds per day @ $1.00 per pound Energy: $5,250 per day Capital: $10,000 per day a) Labor productivity per labor hour for these tires = 2.502.50 tires/labor hour (round your response to two decimal places). b) Multifactor productivity for these tires = 0.02500.0250 tires/dollar (round your response to four decimal places). c) The percent change in multifactor productivity if Fok can reduce the energy bill by $1,000 per day without cutting production or changing any other inputs = nothing% (enter your response as a percentage rounded to two decimal places).
Lillian Fok is president of Lakefront Manufacturing, a producer of bicycle tires. Fok makes 1,000 tires per day with the following resources: Labor: 400 hours per day @ $12.00 per hour Raw Material: 20,000 pounds per day @ $1.00 per pound Energy: $5,250 per day Capital: $10,000 per day a) Labor productivity per labor hour for these tires = 2.502.50 tires/labor hour (round your response to two decimal places). b) Multifactor productivity for these tires = 0.02500.0250 tires/dollar (round your response to four decimal places). c) The percent change in multifactor productivity if Fok can reduce the energy bill by $1,000 per day without cutting production or changing any other inputs = nothing% (enter your response as a percentage rounded to two decimal places).
Management, Loose-Leaf Version
13th Edition
ISBN:9781305969308
Author:Richard L. Daft
Publisher:Richard L. Daft
Chapter7: Planning And Goal Setting
Section: Chapter Questions
Problem 2ED
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Lillian Fok is president of Lakefront Manufacturing, a producer of bicycle tires. Fok makes
1,000
tires per day with the following resources:
Labor:
|
400
hours per day @
$12.00
per hour |
Raw Material:
|
20,000
pounds per day @
$1.00
per pound |
Energy:
|
$5,250
per day |
Capital:
|
$10,000
per day |
a) Labor productivity per labor hour for these tires =
2.502.50
tires/labor hour (round your response to two decimal places).b) Multifactor productivity for these tires =
0.02500.0250
tires/dollar (round your response to four decimal places).c) The percent change in multifactor productivity if Fok can reduce the energy bill by
$1,000
per day without cutting production or changing any other inputs =
nothing%
(enter your response as a percentage rounded to two decimal places).Note: calculate the new multifactor productivity to four decimal places before calculating the percentage change.
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