Calculate the multifactor productivity figures for labor

Reference no: EM1326641

US manufacturing company
(Prob. 2: Productivity)

A US manufacturing company operating a subsidiary in an LDC (Less Developed Country) shows the following results:
US LDC

Sales (units) 100,000 20,000
Labor (hrs.) 20,000 15,000
Raw Mat'l (currency) $20,000 FC 20,000
Capital equipment (hrs)60,000 5,000

(A) Compute the multifactor productivity figures for labor and capital together. Are the results better?

(B) Calculate raw material productivity figures (units/$, where $1 = FC 10). Explain why these figures might be greater in the subsidiary.

Reference no: EM1326641

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