A1 A x fx fx Problem 1 -- 20 pts A B F 1 M N o P Q R 4 D E G H L 1 Problem 1 -- 20 pts - 2. 3 A pharmachetical firm owns and operates three laboratories. The firm has collected the following information from each of its three facilities last month: Tests Labtech Labtech labor Total material Operating completed Revenue labor hours cost per hour cost expenses $3.5 400 $30 $7,500 $3,000 5000 $4.0 275 $25 $1,500 $1,000 6000 $4.5 500 $25 $2,200 $1.000 5 5 Queens lab - Sulfur Springs lab B Niagara lab 10000 0 In additon to the costs in the above table, the firm has determined that $30,000 in monthly corporate overhead (fixed cost) should be divided evenly among three ) laboratories (I.e.$10,000 each). Answer the following questions, Q1-Q4: Q1 (6 pts): Andy is the lab manager that oversees Lab staff technicians. His focus is labor productivity under his supervision (.e. "Tests completed" per "Lab tech labor 5 hour"). Calculate the labor productivity (rounded up to with two decimal digits if not a whole number) for each Lab and show the numbers in the table below. _6 7 Labor 8 productivity 9 Queens lab 9 Answer 20 Sulfur Springs lab 1 Niagara lab 22 3 02 (6 pts): Ben is the financial analyst of the firm and focuses on the revenue generated (as output) by each dollar cost (as input). Therefore, he evaluates multifactor ) 24 productivity, where different costs should be all considered as input. Calculate the multifactor productivity for each Lab and show the numbers (rounded up to with two . ( 5. decimal digits if not a whole number) in the table below. 6 27 Multifactor 28 productivity -9 Queens lab H0 Sulfur Springs lab Answer 31 Niagara lab 12 Q3 (4 pts): Follow Ben's use of multifactor productivity, however calculate multifactor productivity for the firm's operations of three Labs as a whole (instead of 4 separately). What is this overall multifactor productivity (rounded up to with two decimal digits if not a whole number)? 35 16 Overal multifactor Answer 27 productivity 18 19 0 04 (4 pts): Top management's goal is to have a minimum yleld of 7% on each dollar cost for each Lab. That is, following Ben's approach, each Lab would be expected to 11 have a multifactor productivity of at least 1.07. If any Lab's current multifactor productivity is lower than 1.07, the management will work to reduce the $30,000 monthly corporate overhead (but labor cost, material cost and operationg expenses cannot be changed). In this case, the threshold for monthly corporate overhead needs to be 12 calculated, where once monthly corporate overhead goes over this threshold, top management's goal won't be achieved. 13 4 Answer $30,000 if the management's goal is achieved already, otherwise calculate this threshold (expressed as a whole number, no decimal digits). Note that monthly 5 corporate overhead is divided evenly among three laboratories. 16 17 18 Threshold for monthly corporate Answer 9 overhead 50 51 52 53 34 55
