The Hung Ri Hospital recently bought new equipment for the kitchen with the hopes of increasing food
Question:
The Hung Ri Hospital recently bought new equipment for the kitchen with the hopes of increasing food worker productivity. Based on the cost of the equipment and its lifetime, it has been estimated that the investment will be worthwhile if we can improve productivity by 5 percent.
Last year, before undertaking the purchase, a special study was conducted. Its results indicated that it took 15 minutes to prepare a standard meal, 1 8 minutes to prepare a low-sodium meal, and on average 24 minutes to prepare meals with other special requirements. Last year, we prepared 200,000 standard meals; 40,000 low-sodium meals; and 50,000 other special meals. This year, we prepared 170,000 standard meals; 45,000 low-sodium meals;
and 60,000 other special meals. The total time for the food workers this year was 76,500 hours. Using a partial productivity ratio, determine if we achieved the desired 5 percent productivity gain.
Step by Step Answer:
Essentials Of Cost Accounting For Health Care Organizations
ISBN: 9780834205284
1st Edition
Authors: Steven A. Finkler