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The Big Black Bird Company (BBBC) has a large order for special plastic-lined military uniforms to be used in an urgent military operation. Working the normal two shifts of 40 hours each per week, the BBBC production process usually produces 2,500 uniforms per week at a
- Did the multifactor productivity ratio increase, decrease, or remain the same? If it changed, by what percentage did it change?
- Did the labor productivity ratio increase, decrease, or remain the same? ¡fit changed, by what percentage did it change?
- Did weekly profits increase, decrease, or remain the same?
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- The Big Black Bird Company (BBBC) has a large order for special plastic-lined military uniforms to be used in an urgent military operation. Working the normal two shifts of 40 hours each per week, the BBBC production process usually produces 2,500 uniforms per week at a standard cost of $120 each. Seventy employees work the first shift and 30 employees work the second. The contract price is $200 per uniform. Because of the urgent need, BBBC is authorized to use around-the-clock production, 6 days per week. When each of the two shifts works 72 hours per week, production increases to 4,000 uniforms per week but at a cost of $144 each.a. Did the multifactor productivity ratio increase, decrease, or remain the same? If it changed, by what percentage did it change?b. Did the labor productivity ratio increase, decrease, or remain the same? If it changed, by what percentage did it change?c. Did weekly profits increase, decrease, or remain the same?arrow_forwardA company offers ID theft protection using leads obtained from client banks. Three employeeswork 40 hours a week on the leads, at a pay rate of $25 per hour per employee. Each employeeidentifies an average of 3,000 potential leads a week from a list of 5,000. An average of 4 percentactually sign up for the service, paying a one-time fee of $70. Material costs are $1,000 per week,and overhead costs are $9,000 per week. Calculate the multifactor productivity for this operation infees generated per dollar of input.arrow_forwardCarCity is a big retailer for car parts and accessories. The store stocks different types and sizes of car tire. One of the best selling tires is the Tiger Model R125, which is currently purchased from a factory in Indonesia. An analysis of the purchasing operation shows that approximately 2 labor hours are required to process a purchase order, regardless of the quantity purchased. Salaries in the purchasing Department average OMR 15 per hour, including employee benefits. In addition, a detailed analysis of 20 previous purchase orders showed that OMR 132 was spent on telephone, paper, and other consumables directly related to the ordering process (see guidelines above to obtain value of 132). Shipping cost from Indonesia is OMR 250 for a container. A container has a capacity of 800 tires. The lead time for shipments from Indonesia is 15 days. Finally, CarCity’s financial analysts established a holding cost of 30% for this type of tire. The annual demand for the R125 tire is constant at…arrow_forward
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