16. Live Trap Corporation received the data below for its rodent cage production
ID: 470857 • Letter: 1
Question
16. Live Trap Corporation received the data below for its rodent cage production unit. Find the totalproductivity.
Output Input
50,000 cages Production time 620 labor hours
Sales price: $3.50 per unit Wages $7.50 per hour
Raw materials (total cost) $30,000
Component parts (total cost) $15,350
17. Two types of cars (Deluxe and Limited) were produced by a car manufacturer last year.
Quantities sold, price per unit, and labor hours follow. What is the labor productivity for each car? Explain the problem(s) associated with the labor productivity.
Quantity $/Unit
Deluxe car 4,000 units sold $8,000/car
Limited car 6,000 units sold $9,500/car
Labor, Deluxe 20,000 hours $12/hour
Labor, Limited 30,000 hours $14/hour
19. Various financial data for the past two years follow. Calculate the total productivity measure
and the partial measures for labor, capital, and raw materials for this company for both years. What do these measures tell you about this company?
Last Year This Year
Output: Sales $200,000 $220,000
Input: Labor 30,000 40,000
Raw materials 35,000 45,000
Energy 5,000 6,000
Capital 50,000 50,000
Other 2,000 3,000
20. An electronics company makes communications devices for military contracts. The company just completed two contracts. The navy contract was for 2,300 devices and took 25 workers two weeks (40 hours per week) to complete. The army contract was for 5,500 devices that were produced by 35 workers in three weeks. On which contract were the workers more productive?
21. A retail store had sales of $45,000 in April and $56,000 in May. The store employs eight full-time workers who work a 40-hour week. In April the store also had seven part-time workers at 10 hours per week, and in May the store had nine part-timers at 15 hours per week (assume four weeks in each month). Using sales dollars as the measure of output, what is the percentage change in productivity from April to May?
Explanation / Answer
16.
Total productivity = output / input
Output = quantity sold*price per unit = 50000*3.5 = $ 175,000
Input = labour + raw material + component cost = (30000 + 15350 + labour cost)
labour cost = labour hours* hourly rate = 620*7.5 = $ 4650
Input = 30000+15350+4650 = $ 50,000
productivity = 175000/50000 = 3.5
17.
Deluxe car 4,000 units sold $8,000/car = $ (4000*8000) = $ 32,000,000 sales
Labour hours (deluxe) = 20000
Labour procuctivity for deluxe cars = 32000000 / 20000 = $ 1600 per hour
Limited car 6,000 units sold $9,500/car = $(6000*9500) = $ 57,000,000 sales
Labor, Limited = 30,000
Labour productivity = revenue generated by labour / no. of labour hours = $ 57,000,000 / 30000 = $1900 per hour
Thus, Labour productivyt is greater in case of limited cars.
19.
Total productivity(last year) = output / input = 200000 / 122000 = 1.639
Total input (this year) =
Total productivity(last year) = output / input = 220000 / 144000 = 1.527
Partial productivity for Capital is minimum. However, capital forms the biggest portion of the costs. Thus, Capital is utilised most inefficiently, followed by Raw materials & Labour
20.
Navy contract = 2300 devices
labour hours = 25 workers * (40 hours per week) = 1000 hours per week
no. of weeks = 2
labour hours = 2000 hours
Labour productivity = 2300 / 2000 = 1.15 devices per labour hour
Army contract = 5500 devices
labour hours = 35 workers * (40 hours per week) = 1400 hours per week
no. of weeks = 3
labour hours = 4200 hours
Labour productivity = 5500 / 4200 = 1.31 devices per labour hour
Workers are more productive in the army contract.
21.
April
Sales = $ 45000
No. full time workers = 8
No. of part time workers = 7
no. hours put in by part time workers = 10
Labour hours = (8*40 + 7*10) hours per week = 390 hours per week
no. of weeks = 4
Total labour hours = 390*4 = 1560
Labour productivity = sales / labour hours = 45000 / 1560 = 28.85
May
Sales = $ 56000
No. full time workers = 8
No. of part time workers = 9
no. hours put in by part time workers = 15
Labour hours = (8*40 + 9*15) hours per week = 455 hours per week
no. of weeks = 4
Total labour hours = 455*4 = 1820
Labour productivity = sales / labour hours = 56000 / 1820 = 30.77
Percentage change in productivity = [(30.77-28.85) / 28.85]*100 = 6.65 %
Last year This year Partial Productivity (last year) Partial productivity (this year) Output:Sales 200000 220000 Input: labour 30000 40000 6.67 5.5 Raw Materials 35000 45000 5.71 4.89 Energy 5000 6000 40 36.67 Capital 50000 50000 4 4.4 other 2000 3000 100 73.33Related Questions
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