Answered step by step
Verified Expert Solution
Link Copied!

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.

image text in transcribedimage text in transcribedimage text in transcribed

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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Project Finance in Theory and Practice

Authors: Stefano Gatti

2nd edition

978-9382291589, 123919460, 978-0124157538, 978-0123919465

More Books

Students also viewed these Finance questions

Question

Translate the seven steps to Java code.

Answered: 1 week ago