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Question 9: The yellow column is to indicate whether it has increased/decreased. Column F is the Parent (Domestic) column in which the information needs to
Question 9: The yellow column is to indicate whether it has increased/decreased. Column F is the "Parent (Domestic)" column in which the information needs to be changed.
Metric Sales (units) Labor (hours) Labor Cost ($) Materials Cost ($) Equipment (Hours) Equipment Cost ($) Fixed Costs ($) Parent (Domestic Subsidiary (LDC) 1,400,000 480,000 40,000 20.000 $582,800 $110,400 $400,000 $200,000 120,000 30,000 $1,359,600 $225,000 $2,000,000 $725,000 Parent (Domestic) Subsidiary (LDC) 1,900,000 500,000 30,000 28,000 $437,100 $154,560 $400,000 $208,333 120,000 30,000 $1,500,000 $225,000 $2,000,000 $725,000 Values from Prior Page Measure Parent Organization Subsidiary Organization Labor Productivity (units/labor hour) 1400000/40000=35 480000/20000=24 Labor Productivity (units/labor $) 1400000/582800=2.4 480000/110400=4.3 Materials Productivity (units/$) 1400000/400000=3.5 480000/200000=2.4 Equipment Productivity (units/hour) 1400000/120000 = 11.64 480000/30000 = 16 Equipment Productivity (units/$) 1400000/582800 = 2.4 480000/110400 = 4.3 Total-Factor Productivity (units/$) 300+400000+1359600+2 110400+200000+225000+72500 What-If Values Parent Organization Subsidiary Organization 63.33 17.86 4.35 3.23 4.75 2.40 15.83 16.67 1.27 2.22 0.44 0.38 8. Assume purchase of new equipment to change equipment cost to $1,500,000 resulting in a reduction in labor hours to 30,000 with a new labor cost of $437,100. Change the appropriate values in column F above and answer the following question in the space provided below. Determine how labor productivity, equipment productivity and total factor productivity impacted by the new equipment by indicating "increased", "decreased", or "stayed the same" in column C below and calculating the percent change if your answer in column C is "increased" or "decreased". Labor Productivity in terms of units/labor hour Labor Productivity in terms of units/labor $ Equipment Productivity in terms of units/hour Equipment Productivity in terms of units/$ Total Factor Productivity in terms of units/$ 9. Assume all of the above from question #8, but the new machine also increased the number of units produced to 1,900,000. Change the appropriate values in column F above and answer the following question in the space provided below. Determine how labor productivity, equipment productivity and total factor productivity impacted by the new equipment by indicating "increased", "decreased", or "stayed the same" in column C below and calculating the percent change if your answer in column C is "increased" or "decreased". Labor Productivity in terms of units/labor hour Labor Productivity in terms of units/labor $ Equipment Productivity in terms of units/hour Equipment Productivity in terms of units/$ Total Factor Productivity in terms of units/$Step by Step Solution
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