Jim and Jerry run a shoe in the south side of the town. Jim can make 5 pairs of

Question

Jim and Jerry run a shoe in the south side of the town. Jim can make 5 pairs of shoes in a day and Jerry can make 4 pairs per day. The rent for the workshop is $50 per day. The material costs for 9 pairs of shoes are $100. The energy costs is $10 per day. Jim’s wage is $30/hr and Jerry’s wage is $25/hr. Assume, 8 hrs/day. LS1.

What is Jim’s Labor productivity? Express as shoes/hour. (5 Points)

LS2. What is Jerry’s Labor productivity? Express as shoes/hour. (5 points)

LS3. What is the multifactor productivity of the shop? Express as shoes/$. (5points)

Explanation / Answer

Total number of hours per day=8 hours

Jim Labor Productivity=Jim Output/Manhours =5/8=0.625 shoes/hour

Multi Factor productivity=Total Output/Total cost

Total Cost=Rent + Material cost+ Energy cost + Jim wage+ jerry wage

Total Cost =50+100+10+30*8+25*8=$600

Multi Factor productivity=9 unit/$600= 0.015 shoes/$

Related Questions

Navigate

• Browse (All)
• Browse J
• Subjects

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