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The following data are given for a small manufacturing firm: Previous year This year value of the products $6,000,000 $6,500,000 Raw materials used 98,000 units

The following data are given for a small manufacturing firm:

Previous year This year

value of the products $6,000,000 $6,500,000

Raw materials used 98,000 units 110,000 units

Cost of materials per unit $4.50 $5.00

Labor hours used: 30,000 hours 26,000 hours

Cost of labor $20 per hour $21per hour

Energy cost $500000 $400,000

other overhead costs 125,000 $ 150,000

{a} Determine partial productivity for labor for each year'

{bJ Determine multi-factor productivity for labor & materials for each year-

{c} Determine the total factor productivity for each year'

(d) Management would like to know the contribution of each input in

determining the growth {or decline} in total factor productivity. Please

prepare a worksheet to help management understand productivity changes

for each factor inPut.

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