Question

Spicecom Inc. maintains production facilities in several locations around the globe. Average monthly cost data and...

Spicecom Inc. maintains production facilities in several locations around the globe. Average monthly cost data and output levels are as follows.

Units (000s)

CINCINNATI

FRANKFURT

GUADALAJARA

BEIJING

Finished goods

10000

12000

5000

8000

Work in process

1000

2200

3000

6000

Cost (in 00s)

CINCINNATI

FRANKFURT

GUADALAJARA

BEIJING

Labor

3500

4200

2500

800

Material cost

3500

3000

2000

2500

Energy cost

1000

1500

1200

800

Transportation cost

250

2500

2000

5000

Overhead cost

1200

3000

2500

500

a. Calculate the labor productivity of each facility. b. Calculate the multifactor productivity of each facility. c. If Spicecom needed to close one of the plants, which one would you choose?       

Math   Algebra   
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