Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Our examples in the chapter have focused on manufacturing, where the output is units of product and the inputs are manufacturing activities or costs.
Our examples in the chapter have focused on manufacturing, where the output is units of product and the inputs are manufacturing activities or costs. The concept of productivity can be applied in a variety of settings, wherever there are inputs and outputs. For example, consider LandscapeCity, a landscape design company that specializes in small landscape projects for people living in cities. Amanda Caldwell, the assistant manager, is in the process of trying to determine if productivity has been improving since she was hired 6 months ago. Because it is a design firm, labor is the only significant expense, but Amanda is unsure if the number of projects or the dollar of sales volume should be used when computing productivity. She has collected these data for sales and labor expenses for the past 6 months: Month Labor Expense Number of Projects Sales Dollars 1 $ 18,410 38 $ 20,490 2 23,040 48 22,300 3 19,792 50 29,180 4 13,594 12 18,960 5 14,326 17 22,080 6 20,992 50 21,920 Required: 1. Calculate the productivity for each month and the change in productivity from month to month using number of projects as the measure of output. 2. Calculate the productivity for each month and the change in productivity from month to month using sales dollars as the measure of output. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the productivity for each month and the change in productivity from month to month using number of projects as the measure of output. (Round your answers to 4 decimal places. Negative amounts should be indicated by a minus sign.) Month Monthly Change Labor Expense Number of Projects Productivity 12345 1 $ 18,410 38 $ 23,040 48 $ 19,792 50 $ 13,594 12 5 6 SS $ 14,326 17 $ 20,992 50 < Required 1 Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the productivity for each month and the change in productivity from month to month using sales dollars as the measure of output. (Round your answers to 4 decimal places. Negative amounts should be indicated by a minus sign.) Month Labor Expense Sales Dollars Monthly Change Productivity - 1 2 3 4 SASASASAG $ 18,410 $ 20,490 $ 23,040 $ 22,300 $ 19,792 $ 29,180 13,594 $ 18,960 5 $ 14,326 $ 22,080 6 $ 20,992 $ 21,920 < Required 1 Required 2 >
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started