Looking for cost savings in administrative areas, the vice-president for human r

Question

Looking for cost savings in administrative areas, the vice-president for human resources at McMahon Corporation asked his assistant to collect data on the employee cafeterias in the four McMahon locations around the country. After two days, the assistant returned with the following data for the previous year: Labor-hours Meals served Mobile 39,300 117,000 56,300 216,000 Pecos SpokaneLansing 5,600 24,700 74,000 3,200 Required: a. Compute the partial productivity measures for labor for the four locations. (Round your answers to 3 decimal places.) Location Mobile Pecos Spokane Lansing 2.977 3.836 2.996 2.357

Explanation / Answer

Mobile:

Partial Labor Productivity = Meals served / Labor-hours
Partial Labor Productivity = 117,000 / 39,300
Partial Labor Productivity = 2.977

Pecos:

Partial Labor Productivity = Meals served / Labor-hours
Partial Labor Productivity = 216,000 / 56,300
Partial Labor Productivity = 3.837

Spokane:

Partial Labor Productivity = Meals served / Labor-hours
Partial Labor Productivity = 74,000 / 24,700
Partial Labor Productivity = 2.996

Lansing:

Partial Labor Productivity = Meals served / Labor-hours
Partial Labor Productivity = 13,200 / 5,600
Partial Labor Productivity = 2.357

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