Question 1 (Total 30 marks)

Tommy is the operations manager of ABC Co. Ltd. producing various electric appliances; and with recent trend of cost increase, he wishes to look into the productivity of his company. He would like to know if his company is having a 18% increase in productivity with ALL factors considered, in order to be qualified for a productivity improvement bonus. Please see the annual figures below:

	Year 2019/20	Year 2020/21
Unit Produced	5,000,000	5,000,000
Labour (hours)	900,000	710,000
Capital Invested ($)	90,000,000	110,000,000
Materials (Ton)	2,400	2,080

The details of the various cost items are: $42 per labour hour and $17 per kg of materials (1 Ton = 1,000 kgs). While for the capital expense, it is at 0.9% per month of capital investment.

a) Calculate the missing data and productivity percentage change (correct to 1 decimal place) for each category in the table below, a1 to a9. (9 marks) Some answers have been shown for your reference.

	Yr 2019/20	Yr 2020/21	Unit Cost or Rate	Monthly Cost 2019/20	Monthly Cost 2020/21	Productivity Change (%) [state + or -]
Unit Produced	5,000,000	5,000,000
Labour (hours)	900,000	710,000	42	3,150,000	(a1)	(a2)
Capital Invested ($)	90,000,000	110,000,000	0.9%	(a3)	990,000	(a4)
Materials (Ton)	2,400	2,080	17	3,400,000	(a5)	(a6)
Sub-total				(a7)	(a8)	(a9)