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A domestic company operating a subsidiary in an LDC (less-developed country) compiles two sets of metrics based on the parent and subsidiary operations. The table

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A domestic company operating a subsidiary in an LDC (less-developed country) compiles two sets of metrics based on the parent and subsidiary operations. The table below includes sales data in units along with metrics for labor and equipment in both hours and dollars as well as materials costs in dollars. All metrics for the subsidiary have been converted to US dollars. Sales Labor Materials Equipment Parent (Domestic) 200,000 units 40,000 hours /$582,800 $40,000 120,000 hours / $3,400,000 Subsidiary (LDC) 80,000 units 60,000 hours/$511,200 $20,000 10,000 hours / $425,000 1. Compute the multi-factor productivity (all factors) for the parent and the subsidiary operations (When computing your numbers be sure to select the correct metric based on the units you are comparing - i.e. you cannot add units to dollars). Answer the following three items a. Multi-factor (all factor) productivity for parent (in units per dollar) b. Multi-factor (all factor) productivity for subsidiary (in units per dollar) c. Interpret your findings in relation to which of the two operations is more productive 8

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