1. A U.S. company has two manufacturing plants, one in the United States and one in...

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1. A U.S. company has two manufacturing plants, one in the United States and one in another country. Both produce the same product, each for sale in their respective countries. However, their machine productivity figures are quite different. The analyst thinks this is because the U.S. plant uses more automated equipment for processing while the other plant uses a higher percentage of labor. Explain how the machine productivity figures can be misleading in this scenario. 2. (SHOW YOUR COMPLETE WORK) A company reports the following data for one of its products for the first two quarters of year 2023: Output: Sales Inputs: Labor Machine Raw Materials Energy Other Costs Quarter 1, 2023 625,000 units sold at $12 per unit 3,500 labor-hours at $18 per labor- hour 7,500 machine-hours at $8.50 per machine-hour 5,000 pounds at $5 per pound 8,000 kWhs at $0.16 per kWh $6,000 Quarter 2, 2023 610,000 units sold at $12.50 per unit 3,475 labor-hours at $18 per labor- hour 7,525 machine-hours at $8.50 per machine-hour 4,975 pounds at $5 per pound 8,050 kWhs at $0.16 per kWh $5,850 a. b. Calculate the machine productivities (expressed in units sold per machine-hour) in quarters 1 and 2. Find the percentage change in machine productivity from quarter 1 to quarter 2. Calculate the labor productivities (expressed in units sold per dollar invested in labor) in quarters 1 and 2. Find the percentage change in labor productivity from quarter 1 to quarter 2. c. Calculate the material productivities (expressed in sales dollars earned per dollar invested in raw materials) in quarters 1 and 2. Find the percentage change in material productivity from quarter 1 to quarter 2. d. Calculate the energy productivities (expressed in sales dollars earned per kWh) in quarters 1 and 2. Find the percentage change in energy productivity from quarter 1 to quarter 2. e. Calculate the labor-energy productivities (expressed in units sold per dollar invested in labor and energy) in quarters 1 and 2. Find the percentage change in labor-energy productivity from quarter 1 to quarter 2. 1. A U.S. company has two manufacturing plants, one in the United States and one in another country. Both produce the same product, each for sale in their respective countries. However, their machine productivity figures are quite different. The analyst thinks this is because the U.S. plant uses more automated equipment for processing while the other plant uses a higher percentage of labor. Explain how the machine productivity figures can be misleading in this scenario. 2. (SHOW YOUR COMPLETE WORK) A company reports the following data for one of its products for the first two quarters of year 2023: Output: Sales Inputs: Labor Machine Raw Materials Energy Other Costs Quarter 1, 2023 625,000 units sold at $12 per unit 3,500 labor-hours at $18 per labor- hour 7,500 machine-hours at $8.50 per machine-hour 5,000 pounds at $5 per pound 8,000 kWhs at $0.16 per kWh $6,000 Quarter 2, 2023 610,000 units sold at $12.50 per unit 3,475 labor-hours at $18 per labor- hour 7,525 machine-hours at $8.50 per machine-hour 4,975 pounds at $5 per pound 8,050 kWhs at $0.16 per kWh $5,850 a. b. Calculate the machine productivities (expressed in units sold per machine-hour) in quarters 1 and 2. Find the percentage change in machine productivity from quarter 1 to quarter 2. Calculate the labor productivities (expressed in units sold per dollar invested in labor) in quarters 1 and 2. Find the percentage change in labor productivity from quarter 1 to quarter 2. c. Calculate the material productivities (expressed in sales dollars earned per dollar invested in raw materials) in quarters 1 and 2. Find the percentage change in material productivity from quarter 1 to quarter 2. d. Calculate the energy productivities (expressed in sales dollars earned per kWh) in quarters 1 and 2. Find the percentage change in energy productivity from quarter 1 to quarter 2. e. Calculate the labor-energy productivities (expressed in units sold per dollar invested in labor and energy) in quarters 1 and 2. Find the percentage change in labor-energy productivity from quarter 1 to quarter 2.

Answer rating: 100% (QA)

SOLUTION 1 In the scenario described the machine productivity figures can be misleading because they do not take into account the differences in the production processes between the two plants The US ... View the full answer