Kabirs Ceramics spent 3000 Taka on a new kiln last year, in the belief that it would
Question:
Kabir’s Ceramics spent 3000 Taka on a new kiln last year, in the belief that it would cut energy usage 25% over the old kiln. This kiln is an oven that turns “greenware” into finished pottery. Kabir is concerned that the new kiln requires extra labor hours for its operation. Kabir wants to check the energy savings of the new oven and also to look at other measures of their productivity to see if the change really was beneficial. Kabir has the following data to work with:
Last Year | This year | |
Production (finished units) | 4 000 | No change |
Greenware(kgs) | 5 000 | 5 000 |
Labour (hours) | 350 | 300 |
Capital (MU) | 15 000 | 3000 Taka more than last year |
Energy (kWh) | 4 000 | 25 % less than last year |
1.Analyse the productivity percentage change for Labour, Capital and Energy and justify the whether the investment decisions (you agree or not )
Expert Answer:
