CoreTech, Inc. has the following data for the first two quarters of year 2018: Q

Question

CoreTech, Inc. has the following data for the first two quarters of year 2018: Quarter 1, 2018 Quarter 2, 2018 Output: Sales 300,000 units sold at $12 per unit 375,000 units sold at $12 per unit Inputs: Labor 6,000 labor-hours at $15 per labor-hour 5,500 labor-hours at $15 per labor-hour Machine 5,000 machine-hours at $25 per machine-hour 6,000 machine-hours at $25 per machine-hour Raw Materials 3,500 pounds at $5 per pound 4,000 pounds at $5 per pound Energy 7,000 kWhs at $0.75 per kWh 7,500 kWhs at $0.75 per kWh Other Costs $3,000 $2,500 P

a. Calculate the labor productivities (expressed in units sold per labor-hour) in quarters 1 and 2. What is the percentage change in labor productivity from quarter 1 to quarter 2?

b. Calculate the machine productivities (expressed in units sold per dollar invested in machine) in quarters 1 and 2. What is the percentage change in machine productivity from quarter 1 to quarter 2?

c. Calculate the material productivities (expressed in sales dollars earned per dollar invested in raw materials) in quarters 1 and 2. What is the percentage change in material productivity from quarter 1 to quarter 2?

d. Calculate the energy productivities (expressed in sales dollars earned per kWh of energy) in quarters 1 and 2. What is the percentage change in energy productivity from quarter 1 to quarter 2?

e. Calculate the labor-material productivities (expressed in sales dollars earned per dollar invested in labor and raw materials) in quarters 1 and 2. What is the percentage change in labor-material productivity from quarter 1 to quarter 2?

f. Calculate the machine-energy productivities (expressed in units sold per dollar invested in machine and energy) in quarters 1 and 2. What is the percentage change in machine-energy productivity from quarter 1 to quarter 2?

g. Calculate the labor-machine-material productivities (expressed in units sold per dollar invested in labor, machine, and raw materials) in quarters 1 and 2. What is the percentage change in labor-machine-material productivity from quarter 1 to quarter 2?

h. Calculate the total factor productivities (expressed in sales dollars earned per total dollar invested in labor, machine, raw materials, energy, and other costs) in quarters 1 and 2. What is the percentage change in total factor productivity from quarter 1 to quarter 2?

Explanation / Answer

Quarter 1

Sales 300,000 units  Labor 6,000 labor-hours at $15 per labor-hour

Machine 5,000 machine-hours at $25 per machine-hour Raw Materials 3,500 pounds at $5 per pound Energy 7,000 kWhs at $0.75 per kWh Other Costs $3,000

Total output quarter 1 300000x12=3,600,000

Total Input=(6000x15)+(5000x25)+(3500x5)+(7000x0.75)+3000=90000+125000+17500+5250+3000=$240,750

Quarter 2

Sales 375,000 units 5,500 labor-hours at $15 per labor-hour

Machines 6,000 machine-hours at $25 per machine-hour Raw Materials 4,000 pounds at $5 per pound

Energy 7,500 kWhs at $0.75 per kWh other costs $2,500

Total output in quarter 2 375000x 12=4,500,000

Total Input=(5500x15)+(6000x25)+(4000x5)+(7500x0.75)+2500=82500+150000+20000+5625+2500=260,625

a) Labor productivity qrtr 1=300000/6000=50 units sold per labor hour

qtr 2=375000/5500=68.18 units sold per labor hour

Productivity change percentage= prod qrtr 2/ prod qtr 1 x100=68.18/50x100=136.36%. Therefore the productivity increased by 36.36% in quarter 2

b) Machine Productivities at per dollar invested is Qtr1=300000/125000=2.40

Qtr2=375000/150000=2.50

Change percentage=2.5/2.4x100=104.16. Therefore machine productivity increased by 4.16% in qtr 2

c) material productivities (expressed in sales dollars earned per dollar invested in raw materials) in quarters 1 = 3,600,000/17500=205.71

quarter 2=4,500,000/20000=225

Percentage change=225/205.71x100=109.38%. therefore material productivity improved by 9.38%

d) energy productivities (expressed in sales dollars earned per kWh of energy) in quarters 1= 3,600,000/7000=514.285 $ earned per kwh

2=4,500,000/7500=600 $ earned per kwh

Change in productivity %=600/514.285x100=116.667. therefore energy productivity improved by 16.667% in quarter 2

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.