Question

Question 16.66 pts Time Atten 36 N A firm maintains refrigerated trailers at Omaha Steaks Inc. in Omaha, NE. With standard equipment, the form typically cleaned 450 trailers per month. They utilized 225 gallons of solvent, and 30 employees work 22 days per month. 8 hours a day. Management has decided to switch to a larger cleaning machine. Last May, they cleaned 425 trailers in only 17 days. They utilized 275 gallons of solvent, and the 30 employees worked 7.5 hours a day. Evaluate utilizing standard equipment and answer the following: a. What is the firm's raw material productivity Select b. What is the labor productivity (Select Evaluate utilizing the larger machine and answer the following: c. What is the firm's raw material productivity Select] d. What is the labor productivity? (Select Select) e. What is the change in raw material productivity f. What is the change in labor productivity from the standard equipment to the larger cleaning machine? [ Select] o BI

Answer 1

Raw material productivity = Output/Cost of raw materials

a)

Standard Equipment
Output	450
Cost of raw materials	225
Raw material productivity	2

b)

Larger Machine
Output	425
Cost of raw materials	275
Raw material productivity	1.545455

Labour productivity = Output/No. of labour employed

c)

Standard Equipment
Output	450
No. of labour employ	5280
Labour productivity	0.085227

d)

Larger Machine
Output	425
No. of labour employed	3825
Labour productivity	0.111111

e) Change in raw material productivity = (New productivity - Old productivity)/Old productivity

=(1.545455-2)/2*100% = -22.73%

f) Change in labour productivity = (New productivity - Old productivity)/Old productivity

=(0.111111-0.085227)/0.085227 *100% = 30.37%