EXERCISE PROBLEMS

In Microsoft Excel, complete the exercises

1. Based on the following data, calculate the single-factor productivity ratio using hours

of labor for a housekeeping department.

Number of employees = 100

Average hourly rate = $5.50

Total hours worked in September = 15,570

Total square feet maintained = 190,000

2. In the preceding problem, using sensitivity analysis, if the productivity ratio was 13.1

the previous month, has productivity increased or decreased? By what percentage?

3. Assume that a new piece of equipment could allow 25% of the labor force in Question

1 to be eliminated. Using a 173-hour working month for each employee, a total

equipment cost of $60,000 (which has a useful life of 3 years), and ignoring the effect

of cash flow and time value of money, would this be a good use of capital?

4. If a hospital reported the following results, calculate the full-time equivalent

employees per adjusted occupied bed:

Inpatient revenues Outpatient revenues Total patient revenues Inpatient days Productive labor hours $129,215,678 44,996,104 $174,211,782 23,926 916,882