1. (i) A bicycle assembly shop has four employees (one supervisor and three workers) who assemble...
1. (i) A bicycle assembly shop has four employees (one supervisor and three workers) who assemble 175 bikes each week. Employees work five days a week, and 8 hours a day. Labor costs are $ 20 per hour for the supervisor and 12.50 per hour for the workers. The tools and equipment used in the assembly process cost $ 60,000. Capital expenses are 15% of costs per year. Utilities and supplies cost $ 28,000 a year. Assume 52 weeks per year.
(i) What is the labor productivity?
(ii) What is the capital productivity?
(iii) What is the multi-factor productivity
(ii) Tools are updated with a new Cobot. The employees complete 235 bikes each week. Labor is one supervisor and two skilled techs. Employees work five days a week and 8 hours a day. Labor costs are $ 22 per hour for the supervisor and 16 per hour for the skilled techs. The equipment and new tools cost $ 275,000. Capital expenses are 15% of costs per year. Utilities and supplies cost $ 37,500 a year.
(i) What is the labor productivity?
(ii) What is the capital productivity?
(iii) What is the multi-factor productivity
(iv) What is the percentage change in MFP?
Homework Answers
Add Answer to:
1. (i) A bicycle assembly shop has four employees (one
supervisor and three workers) who assemble...
A company operates a 40-hour workweek and employees are paid $ 18 and hour. Two options...
A company operates a 40-hour workweek and employees are paid $ 18 and hour. Two options for improving the process for serving clients are being evaluated. Option A will require the use of more consumable materials, but will speed up the process and allow the staff to server more customers per week. Option B is slower, but costs less in consumable materials. The data from week long beta tests of each option is provided below: Overhead is 0.5 times labor...
Question 1 A company offers ID theft protection using leads obtained from client banks. Three employees...
Question 1 A company offers ID theft protection using leads obtained from client banks. Three employees work 40 hours a week on the leads, at a pay rate of $25 per hour per employee. Each employee identifies an average of 3000 potential leads a week from a list of 5 000. An average of 4 percent actually sign up for the service, paying a one-time fee of $70. Material costs are $1 000 per week, and overhead costs are $9...
You manage a plant that mass-produces engines by teams of workers using assembly machines. The technology...
You manage a plant that mass-produces engines by teams of workers using assembly machines. The technology is summarized by the production function qequals=2020KL where q is the number of engines per week, K is the number of assembly machines, and L is the number of labor teams. Each assembly machine rents for requals=$50 comma 00050,000 per week, and each team costs wequals=$4 comma 0004,000 per week. Engine costs are given by the cost of labor teams and machines, plus $5...
. 1.16 An air-conditioner factory makes three different types of air-conditioners: the ceiling type, the cassette...
. 1.16 An air-conditioner factory makes three different types of air-conditioners: the ceiling type, the cassette type and the wall mounted type. Weekly sales of each type are 2, 4 and 6 pieces, at a price of €350, €450, and €500 each, respectively. The ceiling type can be assembled in 1.5 hours, the cassette type in 1 hour and the wall-mounted type in 45 minutes. Labour cost is €40 per hour and the current factory's multi factor productivity is 2.2....
Posey Ceramics makes ceramic vases for a chain of department stores. The output and cost figures...
Posey Ceramics makes ceramic vases for a chain of department stores. The output and cost figures over the past four weeks are shown here. Labor costs $20 an hour, and materials are $2 a pound. Week 1 2 3 4 Units of output 2000 4000 5000 7000 No. of workers 4 4 5 6 Hours per week per worker 40 48 56 70 Material (lbs) 286 570 720 1000 What is the average multi-factor productivity across all weeks? 0.67 4.96...
Question 2 A local fast food restaurant pays $5 per hour to workers and $50 per...
Question 2 A local fast food restaurant pays $5 per hour to workers and $50 per hour to rent ovens and other kitchen machinery. The restaurant uses seven hours of worker time per unit of machinery time. a. i. Determine whether the restaurant is minimizing its cost of production when the ratio of ii. Do you suggest any adjustment to improve the efficiency in the resource use? A cosmetic company produces skin cream bottles in its local store. The company...
Question 2a (0) A snowboard company currently hires 10 skilled employees who are paid a weekly...
Question 2a (0) A snowboard company currently hires 10 skilled employees who are paid a weekly wage of $1,000. The cost of capital is $3,000 and it is fixed, which means that it does not vary with output. The company is currently producing 240 snowboards. The company's cost will be $13,500 if it produces an additional snowboard. A customer is willing to pay $550 for the 241st snowboard. Should the company produce and sell it? (YES/NO) Choose... Explain. Choose... Question...
You manage a plant that mass produces engines by teame of workers using assembly machines. The...
You manage a plant that mass produces engines by teame of workers using assembly machines. The chrologie summarized by the production function - 10KL Where is the number of engines per week. Kis the number of assembly machines, and is the number of labor teams. Each assembly machinerents for re$10,000 per week, and each team costs w $8,000 per week Engine costs are given by the cost of labor teams and machines, plus $1,000 per engine for raw materials. Your...
Bert's Bottles provided the following expense information for July: Assembly - lime workers' wages Depreciation on...
Bert's Bottles provided the following expense information for July: Assembly - lime workers' wages Depreciation on factory equipment Caps for bottles Plastic bottles Reconfiguring the assembly line Salaries of salespeople Customer support hotline Salaries of research scientists Delivery expenses Customer toll - free order line $56,700 $35.100 $3,800 $52,700 $123.500 $63,900 $12,900 $65,000 $40.900 $8,600 O A. $150,300 O B. $463,100 O C. $148,300 O D. $310,300 Ultra Trail Running Company manufactures trail running shoes at its Wyoming factory. Some...
Whether to Work Overtime or Hire Additional Employees The Fair Labor Standards Act requires employers to...
Whether to Work Overtime or Hire Additional Employees The Fair Labor Standards Act requires employers to pay nonexempt status employees an overtime rate at least equal to 1.5 times the normal hourly wage for each hour worked beyond the 40-hour workweek period. ACME manufacturing has just signed a lucrative contract to produce the casings for flashlights. The contract spans five years. During this time, ACME must increase its total manufacturing output by 25 percent. To meet this added demand, the...
A company operates a 40-hour workweek and employees are paid $ 18 and hour. Two options for improving the process for serving clients are being evaluated. Option A will require the use of more consumable materials, but will speed up the process and allow the staff to server more customers per week. Option B is slower, but costs less in consumable materials. The data from week long beta tests of each option is provided below: Overhead is 0.5 times labor...
Question 1 A company offers ID theft protection using leads obtained from client banks. Three employees work 40 hours a week on the leads, at a pay rate of $25 per hour per employee. Each employee identifies an average of 3000 potential leads a week from a list of 5 000. An average of 4 percent actually sign up for the service, paying a one-time fee of $70. Material costs are $1 000 per week, and overhead costs are $9...
. 1.16 An air-conditioner factory makes three different types of air-conditioners: the ceiling type, the cassette type and the wall mounted type. Weekly sales of each type are 2, 4 and 6 pieces, at a price of €350, €450, and €500 each, respectively. The ceiling type can be assembled in 1.5 hours, the cassette type in 1 hour and the wall-mounted type in 45 minutes. Labour cost is €40 per hour and the current factory's multi factor productivity is 2.2....
Question 2 A local fast food restaurant pays $5 per hour to workers and $50 per hour to rent ovens and other kitchen machinery. The restaurant uses seven hours of worker time per unit of machinery time. a. i. Determine whether the restaurant is minimizing its cost of production when the ratio of ii. Do you suggest any adjustment to improve the efficiency in the resource use? A cosmetic company produces skin cream bottles in its local store. The company...
Question 2a (0) A snowboard company currently hires 10 skilled employees who are paid a weekly wage of $1,000. The cost of capital is $3,000 and it is fixed, which means that it does not vary with output. The company is currently producing 240 snowboards. The company's cost will be $13,500 if it produces an additional snowboard. A customer is willing to pay $550 for the 241st snowboard. Should the company produce and sell it? (YES/NO) Choose... Explain. Choose... Question...
You manage a plant that mass produces engines by teame of workers using assembly machines. The chrologie summarized by the production function - 10KL Where is the number of engines per week. Kis the number of assembly machines, and is the number of labor teams. Each assembly machinerents for re$10,000 per week, and each team costs w $8,000 per week Engine costs are given by the cost of labor teams and machines, plus $1,000 per engine for raw materials. Your...
Bert's Bottles provided the following expense information for July: Assembly - lime workers' wages Depreciation on factory equipment Caps for bottles Plastic bottles Reconfiguring the assembly line Salaries of salespeople Customer support hotline Salaries of research scientists Delivery expenses Customer toll - free order line $56,700 $35.100 $3,800 $52,700 $123.500 $63,900 $12,900 $65,000 $40.900 $8,600 O A. $150,300 O B. $463,100 O C. $148,300 O D. $310,300 Ultra Trail Running Company manufactures trail running shoes at its Wyoming factory. Some...
Most questions answered within 3 hours.
-
Research and explain how a hobby servo motor uses the pulse
width of the control signal...
asked 34 seconds ago -
To construct a solenoid, you wrap insulated wire uniformly
around a plastic tube 14 cm in...
asked 14 minutes ago -
Using traditional methods it takes 11.4 hours to receive a basic
driving license. A new license...
asked 19 minutes ago -
From the Principle of Conservation of Linear Moment, obtain the
Cauchy Movement equations in the Eulerian...
asked 31 minutes ago -
A
solution is made by disolving 2.54 mg of sodium benzoate in 75.00
kg H20
a)...
asked 36 minutes ago -
Sketch the crystal field splitting diagram for the low-spin
[Fe(CN)6 ] 4 - ion.
asked 39 minutes ago -
Sketch the homonuclear diatomic MO diagram for
Mo22+. What kind of magnetism does this dimer
exhibit?
asked 59 minutes ago -
Consider a situation where current output (real GDP) is
currently below potential GDP. What type of...
asked 59 minutes ago -
How are the activators and repressors different in eukaryotes vs
prokaryotes for regulation of gene expression?
asked 1 hour ago -
Task 2.6 : In this exercise, you will create a script to
echo users, based on...
asked 1 hour ago -
The diameter of the Sun is 1.4x 106 kilometers. (1 km
= 3280 ft) What is...
asked 1 hour ago -
Calculate the value of the translational partition function of
O2 at 300 K for a volume...
asked 1 hour ago