Skip to main content Expert Q&A Find solutions to your homework Find solutions to your homework Question (0) A product is processed by two departments during its manufacturing in the following order: machining and assembly. In 2020, the company was able to practice an average selling price of $ 3.22/unit. In 2021, due to competition, it was forced to practice an average sale price of $ 2.85/unit. The following data refer to the product: Year Department Production Raw material ($/unit) Labor (hours/unit) Labor cost ($/hour) 2004 Machining 20,000 0.45 0.15 4.16 Assembly 18,500 0.05 0.08 5.12 2005 Machining 23,600 0.42 0.12 4.50 Assembly 22,200 0.05 0.06 5.60 a) Calculate the total productivity measure and the partial measures for raw materials and labor for this company for both years. b) What do these measures tell you about the company? Tip: keep in mind that output is a finished product. please show how you got calculations in excel Expert Answer This solution was written by a subject matter expert. It's designed to help students like you learn core concepts. Step-by-step 1st step All steps Answer only Step 1/2 To solve this problem using Excel, we can create a table that lists the inputs and outputs of each department for both years, as well as the unit cost of raw materials and labor. Then we can use simple formulas to calculate the productivity measures. Here's an example of how we can set up the table in Excel: Department Input-Raw Materials Input - Labor Output - Units Unit Cost - Raw Materials Unit Cost - Labor Machining 10,000 2,500 9,000 $0.50 $0.25 Assembly 9,000 1,500 8,000 $0.60 $0.30 We can then add a few more rows to calculate the total inputs and outputs for each year: Year Input - Raw Materials Input - Labor Output - Units Unit Cost - Raw Materials Unit Cost - Labor 2020 2020 19,000 4,000 8,000 $0.55 $0.28 2021 17,100 3,000 7,000 $0.64 $0.32 EXPLANATION Please refer to solution in this step. Step 2/2 a) To calculate the productivity measures, we can use the following formulas: Total productivity measure = (Total output) / (Total inputs) Partial productivity measure for raw materials = (Total output) / (Total input of raw materials) Partial productivity measure for labor = (Total output) / (Total input of labor) Using these formulas, we get the following results: Year Total Productivity Measure Partial Productivity Measure - Raw Materials Partial Productivity Measure - Labor 2020 0.421 0.421 2.000 2021 0.410 0.408 2.333 b) These measures tell us that the company's productivity decreased slightly in 2021 compared to 2020. However, the company was able to maintain a relatively high level of productivity in both years, especially in terms of labor. This suggests that the company is relatively efficient in its production processes, even when facing external pressures such as competition and changes in market conditions. EXPLANATION Please refer to solution in this step. Final answer a) In 2020, the total productivity measure and the partial measures for raw materials and labor for this company are 0.421, 0.421 and 2.000 respectively. In 2021, the total productivity measure and the partial measures for raw materials and labor for this company are 0.410, 0.408 and 2.333 respectively. b) These measures tell us that the company's productivity decreased slightly in 2021 compared to 2020. Was this answer helpful? Please show what numbers were multiplied, divided or added by which numbers for the calculations to get all the answers individualy. Thank you very much.