SECTION B

$[60$ MARKS$]$

Answer ANY three questions in this section.

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:

$($A$1$X$)$

$($A$2$X$)$

$($A$3$X$)$

Annual production and sales$($units$)$

$450$

$375$

$500$

Selling price per unit,R

$36000$

$45000$

$50000$

$06$

Direct labour per unit,minutes

$180$

$120$

Direct material cost per unit,R

$8000$

$6550$

$8400$

Actual overhead cost per unit, R

$7100$

$5300$

$4400$

Total direct labour cost is R$3000$ per hour.

REQUIRED:

$3\mathrm{.}1.$Calculate labour productivity$($in Rands per labour hour$)$ foreach 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 seling price of each of the three types of air conditioners

$(6$ marks$)$

by $5\%,$and the total direct lapour 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$).$