QUESTION $3$

$(20$ Marks$)$

Study the information provided below and answer the following questions.

INFORMATION

Paulshron Enterprises $($PE$)$ makes three different types of high$-$end air conditioners: the ceiling type $($A$1$X$),$ the cassette type $($A$2$X$),$ and the wall$-$mounted type $($A$3$X$).$ The data provided below relates to the three types of the air conditioners for the current year:

$\backslash$table$[[,($A$1$X$),($A$2$X$),($A$3$X$)],[$Annual production and sales $($units$),450,375,500],[$Selling price per unit, R$,36000,45000,50000],[$Direct labour per unit, minutes,$180,120,90],[$Direct material cost per unit, R$,8000,6550,8400],[$Actual overhead cost per unit, R$,7100,5300,4400]]$

Total direct labour cost is $R3000$ per hour.

REQUIRED:

$3\mathrm{.}1.$ Calculate labour productivity $($in Rands per labour hour$)$ for each type of air conditioner $($round off

$(6$ marks$)$

answers to the nearest Rand, where necessary$).$

$3\mathrm{.}2.$ Calculate the current multifactor productivity of Paulshron Enterprises $($show all calculations and round

$(8$ marks$)$

off answer to two decimal places$).$

$3\mathrm{.}3.$ Paulshron Enterprises plans to increase the selling price of each of the three types of air conditioners

$(6$ marks$)$

by $5\%,$ and the total direct labour cost is projected to increase to R$3200$ per hour next year. Calculate the expected multifactor productivity of Paulshron Enterprises next year $($Show all calculations and round off the answer to two decimal places$).$