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Company A is an automotive vendor manufacturing company. Average monthly production for 2016 and 2017 were 1200 units and 1500 units respectively. The selling price
Company A is an automotive vendor manufacturing company. Average monthly production for 2016 and 2017 were 1200 units and 1500 units respectively. The selling price was RM 90 and RM 100 per unit for the year 2016 and 2017 respectively. Table 1 provides additional related data. Table 1: Productivity Data for Year 2016 and 2017 + Items 2016 2017 Total Number of Workers 20 22 Average working hours per worker per month 160 160 Average Wage per hour per worker RM13 RM13.5 Annual weight of materials usage (kg) 2400 2800 Price of materials (RM/kg) RM4.50 RM5.00 Average monthly energy usage (kW) 400 420 Price(cents/kW) RM045 RM0.50 Annual capital costs (RM) 260.000 280,000 Annual miscellaneous expenses 28,000 30,000 *Deflator 1.0 *Deflator is used for capital costs and miscellaneous expenses a) Determine the total productivity index and annual profit for year 2016 and 2017. Analyze and comment on the performance for both year in term of total productivity index and annual profit. b) Calculate the partial productivity of materials for the year 2017. c) If the company targets the growth of 10% of total productivity index for the year 2018, what is the output quantity of finished good to be produced? Assume all other inputs remain the same as in year 2017. 1.2 Company A is an automotive vendor manufacturing company. Average monthly production for 2016 and 2017 were 1200 units and 1500 units respectively. The selling price was RM 90 and RM 100 per unit for the year 2016 and 2017 respectively. Table 1 provides additional related data. Table 1: Productivity Data for Year 2016 and 2017 + Items 2016 2017 Total Number of Workers 20 22 Average working hours per worker per month 160 160 Average Wage per hour per worker RM13 RM13.5 Annual weight of materials usage (kg) 2400 2800 Price of materials (RM/kg) RM4.50 RM5.00 Average monthly energy usage (kW) 400 420 Price(cents/kW) RM045 RM0.50 Annual capital costs (RM) 260.000 280,000 Annual miscellaneous expenses 28,000 30,000 *Deflator 1.0 *Deflator is used for capital costs and miscellaneous expenses a) Determine the total productivity index and annual profit for year 2016 and 2017. Analyze and comment on the performance for both year in term of total productivity index and annual profit. b) Calculate the partial productivity of materials for the year 2017. c) If the company targets the growth of 10% of total productivity index for the year 2018, what is the output quantity of finished good to be produced? Assume all other inputs remain the same as in year 2017. 1.2
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