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Abdullah Aldossary makes running shoes in his Chinese plant. With recent increases in his costs, he has a newfound interest in efficiency. Abdullah is interested
Abdullah Aldossary makes running shoes in his Chinese plant. With recent increases in his costs, he has a newfound interest in efficiency. Abdullah is interested in determining the productivity of his organization. He would like to know if his organization is maintaining the manufacturing average of 3% increase in productivity per year. He has the following data representing a month from last year (January 2021) and an equivalent month this year (January 2022): January 2021 January 2022 United produced 2000 2000 Labor (hours 400 350 Plastic (pounds) 12000 1 1000 Capital invested ($) $ 20,000 $22,000 Energy (BTU) 5000 4550 1- Show the productivity percentage change for each category and then determine the improvement for labor-hours (the typical standard for comparison). 2- Show the percent change in productivity for January 2021 versus January 2022, on a multifactor basis with dollars as the common denominator. Costs are as follows: Labor: $15 per hour Plastic: $0.5 per pound Capital expense: 2% per month of investment . Energy: $0.40 per BTU
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