Worked problems $($Show calculations in order to get full credit$)$BUSN $3430$

Worked problems $($Show calculations in order to get full credit$)$

The CEO has asked you to evaluate the firm's productivity by comparing performance a

month from last year and equivalent month this year. The following data are available:

$(10$ points$)$

The CEO determines his costs to be as follows:

Labor $$10$ per hour

Utilities $$0\mathrm{.}30$ per BTU

Capital $5\%$ per month of investment.

Show the productivity change, for one month last year versus one month this year, on a

multifactor basis.

$1.$ The CEO has asked you to evaluate the firm's productivity by comparing performance a month from last year and equivalent month this year. The following data are available: $(10$ points$)$

Last Year This Year

Output $10,500$ units $12,100$ units

Labor $($hours$)9,0009,200$

Utilities $($BTUs$)4,6005,250$

Capital $$71,000$ $$76,000$

The CEO determines his costs to be as follows:

$$ Labor $$10$ per hour

$$ Utilities $$0\mathrm{.}30$ per BTU

$$ Capital $5\%$ per month of investment.

Show the productivity change, for one month last year versus one month this year, on a multifactor basis.