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vodka [1.7K]
3 years ago
10

George Kyparisis makes bowling balls in his Miami plant. With recent increases in his​ costs, he has a newfound interest in effi

ciency. George is interested in determining the productivity of his organization. He would like to know if his organization is maintaining the manufacturing average of a​ 3% increase in productivity. He has the following data representing a month from last year and an equivalent month this​ year: Last Year Now Units Produced 1,200 1,200 Labor​ (hours) 300 250 Resin​ (pounds) 50 46 Capital Invested​ ($) 9,000 11,000 Energy​ (BTU) 2,950 2,850 The productivity change for each of the inputs​ (Labor, Resin,​ Capital, and​ Energy) is: Labor Productivity Change​ = nothing​% ​(enter your response as a percentage rounded to two decimal places and include a minus sign if​ necessary).
Business
1 answer:
Leno4ka [110]3 years ago
8 0

Answer:

                                      Last Year       Now

Units Produced               1,200          1,200

Labor​ (hours)                    300             250

Resin​ (pounds)                  50               46

Capital Invested​ ($)         9,000         11,000

Energy​ (BTU)                   2,950          2,850

last year's labor productivity = 1,200 / 300 = 4 units per labor hour

current year's labor productivity = 1,200 / 250 = 4.8 units per labor hour

productivity increased by (4.8 - 4) / 4 = 20%

last year's materials productivity = 1,200 / 50 = 24 units per pound of resin

current year's materials productivity = 1,200 / 46 = 26.09 units per pound of resin

productivity increased by (26.09 - 24) / 24 = 8.7%

last year's capital productivity = 1,200 / 9,000 = 0.1333 units per $ invested

current year's capital productivity = 1,200 / 11,000 = 0.1091 units per $ invested

productivity decreased by (0.1091 - 0.1333) / 0.1333 = -18.18%

last year's energy productivity = 1,200 / 2,950 = 0.4068 units per BTU

current year's energy productivity = 1,200 / 2,850 = 0.4211 units per BTU

productivity increased by (0.4211 - 0.4068) / 0.4068 = 3.52%

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B) The equilibrium price increases.

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