Question

A U.S. manufacturing company operating a subsidiary in an LDC (less-developed country) shows the following results: U.S. LDC Sales (units) 100,080 20,500 Labor (hours) 19,880 14,880 Raw materials (currency) $ 19,600 19,880 (FC) Capital equipment (hours) 59,400 4,880 *Foreign Currency unit a. Calculate partial labor and capital productivity figures for the parent and subsidiary.

Answer 1

Answer:

The partial labor and capital productivity figures for the parent and subsidiary is 5.03 units per hour, 1.37 units per hour and, 1.68 units per hour, 4.20 units per hour

Explanation:

The computation of the partial labor for the parent and subsidiary is calculated by applying the formula which is shown below:

= Sales ÷  Labor (hours)

For U.S = 100,080 units ÷  19,880 hours = 5.03 units per hour

For LDC = 20,500 units ÷  14,880  hours = 1.37 units per hour

The computation of the capital productivity for the parent and subsidiary is calculated by applying the formula which is shown below:

= Sales ÷ Capital equipment (hours)

For U.S = 100,080 units ÷  59,400 hours = 1.68 units per hour

For LDC = 20,500 units ÷  4,880  hours = 4.20 units per hour