Concept explainers
a)
To determine: The labor productivity per labor hour of Company L.
Introduction: Labor productivity is the valuation of economic growth in a nation. Labor production measures the amount of products produced within an hour; it especially evaluates labor productivity, that is, the amount of real
b)
To determine: Multifactor productivity of Company L.
Introduction: Multifactor productivity is an evaluation of economic performance that compares the amount of products and services produced to the amount of combined input used to produce those products and services.
c)
To determine: The percentage change in multifactor productivity if the company reduces the energy bill by $1,000 per day.
Introduction: Multifactor productivity is an evaluation of economic performance that compares the amount of products and services produced to the amount of combined input used to produce those products and services.
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Operations Management: Sustainability and Supply Chain Management (12th Edition)
- Lillian Folk is president of Lakefront Manufacturing, a producer of bicycle tires. Folk makes 1,200 tires per day with the following resources: Labor: 425 hours per day @ $12.50 per hour Raw Material: 20,000 pounds per day @ $1.00 per pound Energy: $5,000 per day Capital: $10,000 per day Labor productivity per labor hour for these tires = ___ tires/labor hour (round your response to two decimal places).arrow_forwardMr. ichul is a Director of a pastry factory in Bandung. To produce 350 cakes per day it takes the following things Labor : 350 hours / day @ $5 / hourRaw Material : 2 ton / day @ $1 / kgEnergy : $2,000 / dayCapital Cost : $500 / day a. What is the labor productivity per labor-hour for cake production at the factory?b. What is the multifactor productivity for cake production at the factory?c. In order to meet the needs for Eid later, Mr. ichul wants to increase his production to500 more per day than the previous cake production without changing other variables, what is the productivity now?arrow_forwardABC Insurance Ltd. wants to evaluate its labor and multifactor productivity with a new computerized title-search system. The company has a staff of four, each working 8 hours per day (for a payroll cost of $630/day) and overhead expenses of $450 per day. Collins processes and closes on 7 titles each day. The new computerized title-search system will allow the processing of 13 titles per day. Although the staff, their work hours, and pay are the same, the overhead expenses are now $900 per day. Calculatea) single factor productivity with old systemb) multi factor productivity with old systemc) ) single factor productivity with new systemd) multi factor productivity with new systemarrow_forward
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- Management, Loose-Leaf VersionManagementISBN:9781305969308Author:Richard L. DaftPublisher:South-Western College Pub