Show all work! Please make sure to complete a,b, and c

3. A U.S. manufacturing company operating a subsidiary in an LDC (less-developed country) shows the following results:

U.S. LDC

Sales (units) 100,000 20,000

Labor (hours) 20,000 15,000

Raw materials (currency) $20,000 FC 20,000

Capital equipment (hours) 60,000 5,000

a. Calculate partial labor and capital productivity figures for the parent and subsidiary. Do the results seem confusing?

b. Compute the multifactor productivity figures for labor and capital together. Do the results make more sense?

c. Calculate raw material productivity figures (units/$ where $1=FC 10). Explain why these figures might be greater in the subsidiary.