Solutions_Problems_OM_11e_Stevenson 1 / 22 Chapter 02 - Competitiveness, Strategy, and Productivity 3
(1) (2) (3) (4) (5) (6) (7) Week Output Worker Cost@ $12x40 Overhead ********Material Cost@$6 Total Cost MFP (2) (6) 1 30,000 2,880 4,320 2,700 9,900 3
03 2 33,600 3,360 5,040 2,820 11,220 2
99 3 32,200 3,360 5,040 2,760 11,160 2
89 4 35,400 3,840 5,760 2,880 12,480 2
84 *refer to solved problem #2 Multifactor productivity dropped steadily from a high of 3
03 to about 2
Before: 80 5 = 16 carts per worker per hour
After: 84 4 = 21 carts per worker per hour
Before: ($10 x 5 = $50) + $40 = $90; hence 80 ÷ $90 =
89 carts/$1
After: ($10 x 4 = $40) + $50 = $90; hence 84 ÷ $90 =
93 carts/$1
Labor productivity increased by 31
25% ((21-16)/16)
Multifactor productivity