Question
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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