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The following data has been collected regarding two competing custom motorcycle

ID: 386982 • Letter: T

Question

The following data has been collected regarding two competing custom motorcycle shops. Montgomery County Cycles (MCC) used 500 labor hours and 400 machine hours to manufacture 10 custom motorcycles. Blacksburg BadBoy Bikes (BBB) used 300 labor hours and 400 machine hours to manufacture 6 custom motorcycles.

Machine productivity for BBB is

50 hours per motorcycle

he following data has been collected regarding two competing custom motorcycle shops. Montgomery County Cycles (MCC) used 500 labor hours and 400 machine hours to manufacture 10 custom motorcycles. Blacksburg BadBoy Bikes (BBB) used 300 labor hours and 400 machine hours to manufacture 6 custom motorcycles.

Labor productivity for MCC is:

40 hours per motorcycle

The following data has been collected regarding two competing custom motorcycle shops. Montgomery County Cycles (MCC) used 500 labor hours and 400 machine hours to manufacture 10 custom motorcycles. Blacksburg BadBoy Bikes (BBB) used 300 labor hours and 400 machine hours to manufacture 6 custom motorcycles.

When using labor for comparison, which custom motorcycle shop is more productive?

MCC

The following data has been collected regarding two competing custom motorcycle shops. Montgomery County Cycles (MCC) used 500 labor hours and 400 machine hours to manufacture 10 custom motorcycles. Blacksburg BadBoy Bikes (BBB) used 300 labor hours and 400 machine hours to manufacture 6 custom motorcycles.

When using machine time for comparison, which custom motorcycle shop is more productive?

Both shops are equally productive

A. 0.015 motorcycles per hour

Explanation / Answer

Montgomery County Cycles (MCC)

Labour hours = 500

Machine hours = 400

Mototrcycles manufactured = 10

Blacksburg BadBoy Bikes (BBB)

Labour hours = 300

Machine hours = 400

Mototrcycles manufactured = 6

Ans 1)

Machine productivity for BBB = Total motorcycles manufactured by BBB / Machine hours for BBB

= 6 / 400

= 0.015 motorcycles per hour

Hence option A is correct.

Ans 2)

Labour productivity for MCC = Total motorcycles manufactured by MCC / Labour hours for MCC

= 10 / 500

= 0.02 motorcycles per hour

Hence option B is correct.

Ans 3)

Labour productivity for BBB = Total motorcycles manufactured by BBB / Labour hours for BBB

= 6 / 300

= 0.02 motorcycles per hour

Labour productivity for MCC = 0.02 motorcycles per hour (from above)

The labour productivity for both MCC and BBB is the same. Hence option B is correct.

Ans 4)

Machine productivity for MCC = Total motorcycles manufactured by MCC / Machine hours for MCC

= 10 / 400

= 0.025 motorcycles per hour

Machine productivity for BBB = 0.015 motorcycles per hour (from above)

Hence the machine productivity for MCC is higher than that of BBB. Hence MCC motorcycle shop is more productive and option C is correct.

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