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(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