LN Garment, a garment manufacturer, use one workshop to produce two types of sweaters - standard...

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LN Garment, a garment manufacturer, use one workshop to produce two types of sweaters - standard and elegant in December and January. There were 20 workers in this workshop and each worker received $200 per hour for their work. In December, the manufacturer produced 500 dozen standard sweaters at a unit selling price of $200 with a direct material cost of $50 each. During December, standard sweaters were produced on 8 working days (of 10 hours each), and other models of sweaters were produced on other days. In December, the manufacturer also produced 300 dozen elegant sweaters at a unit selling price of $350 with a direct material cost of $100 each on 7 working days (of 10 hours each). However, on one day of these 7 days, two workers were absent from work without permission and hence these two workers did not get their daily wages, The annual overhead expense incurred in operating the whole production plant was $50,000 per working day. a. Determine the labor productivity of elegant sweaters in December. [4 Marks] b. Determine the multifactor productivity of the workshop in December and give an interpretation of your MFP. [8 Marks] c. In January, the manufacturer produced 400 dozen standard sweaters in 8 working days and 400 dozen elegant sweaters in 8 days (without any worker taking leave) and there was an increase of hourly wages of 10%. Other parameters remained. What was the productivity growth (the percentage change) in multifactor productivity of [8 Marks] the manufacturer from December to January? Note: For all productivity ratios (labor productivity ratios and multifactor productivity ratios), you should use dollar values as Outputs and Inputs. LN Garment, a garment manufacturer, use one workshop to produce two types of sweaters - standard and elegant in December and January. There were 20 workers in this workshop and each worker received $200 per hour for their work. In December, the manufacturer produced 500 dozen standard sweaters at a unit selling price of $200 with a direct material cost of $50 each. During December, standard sweaters were produced on 8 working days (of 10 hours each), and other models of sweaters were produced on other days. In December, the manufacturer also produced 300 dozen elegant sweaters at a unit selling price of $350 with a direct material cost of $100 each on 7 working days (of 10 hours each). However, on one day of these 7 days, two workers were absent from work without permission and hence these two workers did not get their daily wages, The annual overhead expense incurred in operating the whole production plant was $50,000 per working day. a. Determine the labor productivity of elegant sweaters in December. [4 Marks] b. Determine the multifactor productivity of the workshop in December and give an interpretation of your MFP. [8 Marks] c. In January, the manufacturer produced 400 dozen standard sweaters in 8 working days and 400 dozen elegant sweaters in 8 days (without any worker taking leave) and there was an increase of hourly wages of 10%. Other parameters remained. What was the productivity growth (the percentage change) in multifactor productivity of [8 Marks] the manufacturer from December to January? Note: For all productivity ratios (labor productivity ratios and multifactor productivity ratios), you should use dollar values as Outputs and Inputs.

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a Labor Productivity of Elegant Sweaters in December Labor ProductivityElegant350 per worker100 d... View the full answer