Question

George Kyparisis makes bowling balls in his Miami plant. With recent increases in his​ costs, he has a newfound interest in efficiency. George is interested in determining the productivity of his organization. He would like to know if his organization is maintaining the manufacturing average of a​ 3% increase in productivity. He has the following data representing a month from last year and an equivalent month this​ year:

Last Year   Now   Cost Per Input Unit
Units Produced 1,200 1,200  
Labor (hours) 300 275 $12
Resin (pounds). 50 45 $5
Capital Invested ($) 10,000 11,000   1%
Energy (BTU) 3,000 2,850 $0.50

what is The percent change in productivity for one month last year versus one month this year on a multifactor basis with dollars as the common denominator​ =

​(enter your response as a percentage rounded to two decimal​ places).

Answer 1

	last year	Current year	productivity last year= Production /factor	productivity current year= Production /factor	Change in productivity= [Productivity current year-productivity last year]/productivity last year
Production	1200	1200
Factors
labor cost= $ per hour*Labor hours	$3,600	$3,300
Material cost= material*resin cost	$250	$225
Capital cost	$10,000	$11,000
energy cost= Energy * Energy cost per unit	$1,600	$1,425
Total cost=material+Energy+labor costs	$15,450	$15,950	0.078	0.075	-3.13%

The percent change in productivity for one month last year versus one month this year on a multifactor basis with dollars as the common denominator​ =-3.13%

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