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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
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 Landscape City, 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 1 2 3 4 Labor Expense $16,950 20,160 19,492 13, 294 14,026 20,692 Number of Projects 35 42 60 14 19 60 Sales Dollars $20,190 22,000 28,880 18,660 21,780 21,620 6 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 Number of Projects 35 Productivity Monthly Change Labor Expense S 16,950 S 20.160 1 IN 42 3 S 60 4 S 14 19,492 13,294 14,026 20,692 $ 19 5 6 S 60 Required 1 Required 2 > 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 Monthly Sales Dollars Productivity Change 1 S 16,950 $ 20,190 2 S 20,160 $ 22,000 3 S 19,492 S 28,880 13,294 S 18,660 5 14,026 S 21,780 6 20,692 S 21,620 4 S S S
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