Question: The yellow collum will either: increase, decrease,or stay the same. Subsidiary Sales Increase 10. Assume the subsidiary undertakes an initiative to increase production to sell

The yellow collum will either: increase,The yellow collum will either: increase,The yellow collum will either: increase, decrease,or stay the same.

Subsidiary Sales Increase 10. Assume the subsidiary undertakes an initiative to increase production to sell 500,000 units to meet customer demand. The result is that labor hours increased to 28,000, labor cost increased to $154,560 and materials cost increased to $208,333. Change the appropriate values in column F above and answer the following question in the space provided below. Determine how labor productivity, equipment productivity and total factor productivity impacted by the new equipment by indicating "increased", "decreased", or "stayed the same" in column C below and calculating the percent change if your answer in column C is "increased" or "decreased". Labor Productivity in terms of units/labor hour Labor Productivity in terms of units/labor $ Equipment Productivity in terms of units/hour Equipment Productivity in terms of units/$ Total Factor Productivity in terms of units/$ Data: Metric Sales (units) Labor (hours) Labor Cost ($) Materials Cost ($) Equipment (Hours) Equipment Cost ($) Fixed Costs ($) Parent (Domestic) 1,400,000 40,000 $582,800 $400,000 120,000 $1,359,600 $2,000,000 Subsidiary (LDC) 480,000 20,000 $110,400 $200,000 30,000 $225,000 $725,000 Use column F for questions 8-10 Parent (Domestic) 1,900,000 30,000 $437,100 $400,000 120,000 $1,500,000 $2,000,000 Use column G for questions 8-10 Subsidiary (LDC) 500,000 28,000 $154,560 $208,333 30,000 $225,000 $725,000 Values from Prior Page Parent Organization 35.00 Subsidiary Organization 24.00 What-If Values Parent Organization Subsidiary Organization 63.33 17.86 2.40 4.35 4.35 3.23 Measure Labor Productivity (units/labor hour) Labor Productivity (units/labor $) Materials Productivity (units/$) Equipment Productivity (units/hour) Equipment Productivity (units/$) Total-Factor Productivity (units/$) 3.50 2.40 4.75 2.40 11.67 15.83 16.67 16.00 4.35 1.27 2.40 0.32 2.22 0.38 0.38 0.44

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!