(TCO 2) Various financial data for SunPath Manufacturing for 2012 and 2013 follo
ID: 379552 • Letter: #
Question
(TCO 2) Various financial data for SunPath Manufacturing for 2012 and 2013 follow. What is the percentage change in the labor partial productivity measure for SunPath between 2012 and 2013?
2012
2013
Output:
Sales:
$300,000
$330,000
Inputs:
Labor:
$40,000
$43,000
Raw Materials:
$45,000
$51,000
Energy:
$10,000
$9,000
Capital Employed:
$250,000
$262,000
Other
$2,000
$6,000
2012
2013
Output:
Sales:
$300,000
$330,000
Inputs:
Labor:
$40,000
$43,000
Raw Materials:
$45,000
$51,000
Energy:
$10,000
$9,000
Capital Employed:
$250,000
$262,000
Other
$2,000
$6,000
Explanation / Answer
.
For Rauniar,
Energy partial productivity in 2011 = output /energy = 300000/10000 = 30
Energy partial productivity in 2012 = output /energy = 330000/9000 = 36.66
Thus,
% change in Energy partial productivity = (36.66 – 30) / 30 = 22.2% change
B.
For Rauniar,
Labor partial productivity in 2011 = output /Labor employed = 300000/40000 = 7.5
Labor partial productivity in 2012 = output /Labor employed = 330000/43000 = 7.67
% change in Labor partial productivity = (7.67 – 7.5) / 7.5 = 2.267% change
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