1. In a 1-year period, the Productive Components Corporation has shipped units worth $1,200,000 to its customers. It produced units worth $250,000 for finished goods (FG) inventory. PCCorp has $50,000 of work in process (WIP) units. During the same 1-year period, PCCorp had a labor bill of $140,000. Its capital expenses for the year are calculated to be $430,000. Materials were purchased costing $530,000. Energy expenses were $225,000 and miscellaneous expenses were estimated to $75,000.
2. Calculate the multifactor productivity composed of labor and capital units shipped plus finished goods for PCCorp. In place of fixed costs use (sales + finished goods); set variable cost to 0; in place of selling price use (labor cost + capital expenses). Breakeven volume in solution is equal to multifactor productivity.
3. What is PCCorp’s total productivity? Abbreviating, in place of FC use (sales + FG + WIP); VC = 0, in place of SP, we total all costs, BEV in solution is equal to total productivity.
4. What is PCCorps capital productivity? This must be done in Excel and formula showed how you arrive at the answer.

  • CreatedAugust 05, 2013
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