QUESTION $19$

$(3$ points$)$ Jason Hamilton is the owner of Hamilton$$s Performance Skis. He has $2$ facilities producing his excellent skis $$ one in Boulder, Colorado and one in Fort Collins, Colorado. Jason has decided to close one of the facilities and consolidate manufacturing operations in the most productive location. You are the Operations Manager for Hamilton$$s Performance Skis, and Jason has tasked you to make a recommendation about which facility should close. The productivity information for each location is summarized in the table below.$($CH$14)$

Inputs and Outputs

Boulder location

Fort Collins location

Skis produced

$500$

$500$

Labor cost

$$11,000$

$$10,000$

Materials cost $($incl transportation$)$

$$9000$

$$10,000$

Lease Payments

$$22,000$

$$20,000$

Calculate the Labor Productivity, Material Productivity, Lease Productivity and Total Productivity for each location. $($Please Show Your Work$)$

Using only the information from your calculations, which site would you propose closing and why? Include analysis of each of the productivity measures to justify your response for a full answers.