Problem 1--Productivity Measurement Based on the data provided below for a small company, please answer the questions that follow: Previous Year Current Year Total # units produced 200,000 210,000 Average price/unit $12.00 $12.25 Total cost of raw materials $250,000 $270,000 Labor hours used: 30,000 hours 28,000 hours Average labor cost (incl. fringe) $18 per hour $19 per hour Other resources, incl. Overhead $190,000 $210,000 A) Determine labor productivity for each year. B) Determine multifactor productivity for labor and raw materials. C) Determine total factor productivity for each year. D) Suppose the manager has set the goal of improving total productivity by at least 3% this year compared to the previous year. As an operations analyst in the company, she turned to you and said: I need to know if we have achieved our productivity goal this year. I would also like to know the relative productivity performance of each factor during the two years. Assignment: Please help the manager understand if the desired 3% growth in total productivity has been achieved this year compar to last year, and show the relative productivity performance of each factor during the two years. (a) Level Strategy Resources Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Number of workers Beginning Inventory Production Demand Ending Inventory Costs Regular labor cost Overtime cost, if any Hiring/Firing cost Inventory holding Cost Total Cost (b) Chase strategy Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Resources Number of workers Beginning Inventory Production Demand Ending Inventory Costs Regular labor cost Overtime cost, if any Hiring/Firing cost Inventory holding Cost Total Cost