A U.S. manufacturing company operating a subsidiary in an LDC (less-developed co

Question

A U.S. manufacturing company operating a subsidiary in an LDC (less-developed country) shows the following results Sales (units) Labor (hours) Raw materials (currency) Capital equipment (hours) U.S 19,900 59,700 LDC 20,300 14,900 106,000 $ 19,700 FC 19,900 4,900 Foreign Currency unit a. Calculate partial labor and capital productivity figures for the parent and subsidiary. (Round your answers to 2 decimal places.) U.S LDC Labor productivity Capital productivity b. Compute the multifactor productivity figures for labor and capital together. (Round your answers to 2 decimal places.) U.S LDC Multifactor productivity C. Calculate raw material productivity figures (units/$ where $1 = FC 10). (Round your answers to 2 decimal places.) U.S LDC Raw material productivity

Explanation / Answer

Labour productivity:-

U.S. =106000/19900=5.33

L.D.C.=20300/14900 =1.36

Capital Productivity:-

U.S. =106000/59700=1.78

L.D.C.=20300/4900 =4.14

Multifactor Productivity:-

U.S. =106000/(19900+59700)=1.33

L.D.C.=20300/(14900 +19900)=0.58

Raw Material Productivity:-

U.S. =106000/19700=5.38

L.D.C.=20300/(19900/10)=10.2

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