Question Help As part of a study for the Department of Labor Statistics, you are
ID: 333908 • Letter: Q
Question
Question Help As part of a study for the Department of Labor Statistics, you are assigned the task of evaluating the improvement in productivity of small businesses. Data for one of the small businesses you are to evaluate is shown below. The data are the monthly average of last year and the monthly average this year. Determine the multifactor productivity using the following costs: labor $8 per hour capital 083% per month of investment; energy $0.60 per BTU Monthly Average Last Year This Year 1,500 350 Capital investment (S)15,000 3,000 1,500 325 18,000 2.750 Labor (hours) Energy (BTU) Last year, the multifactor productivity was dozen/S (round your response to three decimal places) This year, the multifactor productivity is dozen/S (round your response to three decimal places) The percent change in productivity for the monthly average last year versus the monthly average this year on a multifactor basis with dollars as the common denominator is % enter your response as a percentage rounded o one dec mal place n. SExplanation / Answer
Ans 1)
The monthly average of production(in dozen) last year = 1500
Labour cost per hour = $8
Total labour hours = 350
Total labour cost = $8 * 350
= $2800
Energy cost per BTU = $0.60
Total energy (in BTU) = 3000
Total energy cost = 0.6 * 3000
= $1800
Total capital investment = $15000
Total capital usage per month = 0.83% of total capital investment
= (0.83/100)* 15000
= $124.5
Total monthly average cost = $2800 + $1800 + $124.5
=$4724.5
Multi factor productivity of last year = 1500/ 4724.5 = 0.317 dozen per dollar
Ans 2)
The monthly average of production(in dozen) last year = 1500
Total labour hours = 325
Total labour cost = $8 * 325
= $2600
Total energy (in BTU) = 2750
Total energy cost = 0.6 * 2750
= $1650
Total capital investment = $18000
Total capital usage per month = 0.83% of total capital investment
= (0.83/100)* 18000
= $149.4
Total monthly average cost = $2600 + $1650 + $149.4
=$4399.4
Multi factor productivity of this year = 1500/ 4399.4 = 0.340 dozen per dollar
Ans 3)
% change in productivity on a multifactor basis =[ (0.340 - 0.317) / 0.317] * 100
= 7.2%
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.