Question: X Corp manufactures model A and Model B. Data are as follows: X Corp manufactures model A and Model B. Data are as follows: Model

X Corp manufactures model A and Model B. Data are as follows:

X Corp manufactures model A and Model B. Data are as follows: Model A Model B No of units produced 100 150 Prime Cost 20,000 30,000 Material moves 6 4 DL hours per unit 5 5 No of Inspections 3 7 Inspection cost totaled 50,000 and Handling cost totaled 80,000. Both are product cost. Using Traditional costing, what is the unit cost of Model A

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=+productivity depends on growth in total factor productivity and growth in the capitallabor ratio. In particular, show that D1Y/L2 Y/L = DA A + a D1K/L2 K/L .

=+ Hint: You may fi nd the following mathematical trick helpful. If z = wx, then the growth rate of z is approximately the growth rate of w plus the growth rate of x. That is, z/z w/w + x/x.