The HandyShop, a small business selling handmade products, is currently selling 4 items, namely, tote bags, crochet baskets, bracelets, and necklaces. There are 2 staff working for the shop, each works for 6 hours each day. Each day, the two staff can make and sell a total of 4 tote bags, 3 crochet baskets, 6 bracelets, and 10 necklaces.The selling price, unit materials cost and the overhead cost for each items are tabulated below:Unit selling price Unit material cost Overhead cost/dayTote Bags Crochet Baskets$30 $35 $4 $6 $20 $20Bracelets Necklaces$25 $22 $3 $2 $15 $10( a ) Suppose each staff has an hourly wage of $17.25, compute the labour productivity (in $/labour-hour) and the multifactor productivity, respectively.( b ) The shop is capable to accommodate two more staff and the shop owner is deciding whether to appoint two recently interviewed candidates, Ava and Bertha.- Ava is an expert in making tote bags and crochet baskets. She can make andsell 10 tote bags and 8 crochet baskets in a 6-hour day. Ava asks for a wageof $30/hr.- Bertha is an expert in making bracelets and necklaces. She can make and sell12 bracelets and 14 necklaces in a 6-hour day. Bertha asks for a wage of$32.5/hr.In order to improve the multifactor productivity, what is the best decision on the appointment of Ava and/or Bertha?
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
The HandyShop, a small business selling handmade products, is currently selling 4 items, namely, tote bags, crochet baskets, bracelets, and necklaces. There are 2 staff working for the shop, each works for 6 hours each day. Each day, the two staff can make and sell a total of 4 tote bags, 3 crochet baskets, 6 bracelets, and 10 necklaces.
The selling price, unit materials cost and the overhead cost for each items are tabulated below:
Unit selling price Unit material cost Overhead cost/day
Tote Bags Crochet Baskets
$30 $35 $4 $6 $20 $20
Bracelets Necklaces
$25 $22 $3 $2 $15 $10
( a ) Suppose each staff has an hourly wage of $17.25, compute the labour productivity (in $/labour-hour) and the multifactor productivity, respectively.
( b ) The shop is capable to accommodate two more staff and the shop owner is deciding whether to appoint two recently interviewed candidates, Ava and Bertha.
- Ava is an expert in making tote bags and crochet baskets. She can make and
sell 10 tote bags and 8 crochet baskets in a 6-hour day. Ava asks for a wage
of $30/hr.
- Bertha is an expert in making bracelets and necklaces. She can make and sell
12 bracelets and 14 necklaces in a 6-hour day. Bertha asks for a wage of
$32.5/hr.
In order to improve the multifactor productivity, what is the best decision on the appointment of Ava and/or Bertha?
Note: No changes should be made in formulae. Only the highlighted cells should be modified as per given details.
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