Question
Lolo operates two highly automated chemical processing plants: Fajardo and Mayaguez. The same production process takes place in two plants and turns material Zip into
Lolo operates two highly automated chemical processing plants: Fajardo and Mayaguez. The same production process takes place in two plants and turns material Zip into chemical compound Plof. In order to evaluate their productivity measures, the managers of Lolo have the accounting department gather comparative operating and financial data in the follow tab
fajardo Plant Mayaquez Plant
this year | last year | this year | last year | ||
Inputs | |||||
Zip | 30,000 lb @ $75 | 29,000 lb @ $73 | 50,000 lb @ $72 | 52,000 lb @ $71 | |
Labor | 4,000 hr @ $15 | 3,740 hr @ $14 | 6,050 hr @ $ 14 | 6,180 hr @ $13 | |
Overhead | $3,150,000 | $2,878,000 | $5,480,000 | $5,672,500 | |
Outputs: | |||||
Plof | 26,500 lb | 24,650 lb | 43,100 lb | 44,200 lb | |
Value | $7,380,000 | $ 6,763,500 | $11,089,300 | $11,428,300 | |
Required: Determine relevant partial productivity and total factor productivity measures for both plants and compare the results.
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