Question: Martin Manufacturing has implemented several programs to improve its productivity. They have asked you to evaluate the firm's productivity by comparing this year's performance with

Martin Manufacturing has implemented several programs to improve its productivity. They have asked you to evaluate the firm's productivity by comparing this year's performance with last year's. The following data are available:

First calculate your problem data using the formula below.

Last Year

This Year

Output (units)

(10,500 * 1)+3000

(12,100 * 1)+3000

Labor Cost ($)

$12,000

* 1

$13,200 * 1

Utilities ($)

$7,600 * 1

$8,250 * 1

Capital ($)

$83,000

* 1

$88,000 * 1

.

Required Question:

  1. Calculate labor productivity Has Martin Manufacturing improved its productivity during the past year?
  2. Calculate multi-factor productivity Has Martin Manufacturing improved its productivity during the past year?
  3. Discuss 2 potential reasons for the change in productivity?

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