Reference no: EM132357981

Question: 1

A catering company prepared and served 325 meals at an anniversary celebration last week using 2 workers. The week before, 4 workers prepared and served 270 meals at a wedding reception.

a1. Calculate the labor productivity for each event. (Round your answers to 1 decimal place.)

Anniversary meals/worker:

Wedding meals/worker:

a2. For which event was the labor productivity higher?

• Wedding
• Anniversary

2. A company that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the labor content of the jobs needed to produce the shopping carts. Prior to buying the new equipment, the company used 7 workers, who together produced an average of 90 carts per hour. Workers receive $12 per hour, and machine cost was $30 per hour. With the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by $11 per hour while output increased by 5 carts per hour.

a. Compute labor productivity under each system. Use carts per worker per hour as the measure of labor productivity. (Round your answers to 3 decimal places.)

Before ______ carts per worker per hour

After _______ carts per worker per hour

b. Compute the multifactor productivity under each system. Use carts per dollar cost (labor plus equipment) as the measure. (Round your answers to 3 decimal places.)

Before _______carts/dollar cost

After ________carts/dollar cost

c. Comment on the changes in productivity according to the two measures. Round your intermediate calculations to 3 decimal places and final answers to 2 decimal places.

Labor productivity  (Increased or decreased) __________ by ______%

Multifactor productivity  (Increased or decreased) __________ by ______%

3. A manager checked production records and found that a worker produced 176 units while working 40 hours. In the previous week, the same worker produced 120 units while working 30 hours.

a. Compute Current period productivity and Previous period productivity. (Round your answers to 2 decimal places.)

Current period productivity ________Units / hr

Previous period productivity ________Units / hr

b. Did the worker's productivity increase, decrease, or remain the same? (Round your intermediate calculations and final answer to 2 decimal places. Omit the "%" sign in your response.)

Worker's productivity  (remain the same, decreased, increased)   __________   by ______%