Reference no: EM132092027

One automaker o§ers several car models, and models A and B are in the best-selling list. In November, the automaker produced 2;500 cars of model A at a unit selling price of $80;000. The automaker has 120 direct labor employees whose compensation (including wages and fringe benefits) amounts to $130 per hour per employee. During November, model A cars were produced on 12 working days (of 8 hours each), and other models were produced on other days.

1. Determine the labor productivity of model A in November.

2. The automaker produces model B at a unit selling price of $150;000. During November, 900 model B cars were produced on 7 working days (of 8 hours each). On one day, one employee called in sick. Suppose each employee is paid based on his actual working hours. Determine the labor productivity of model B in November.

3. Here is additional information about the automaker. The direct material cost of model A is $20; 000 per unit; the direct material cost of model B is $28; 000 per unit. The annual overhead expense incurred in operating the factory is $50; 000 per working day. Determine the multi-factor productivity of the automaker in November.

4. In December, the automaker produced 850 model B cars in 6 working days (without any employee sick leave). What was productivity growtho´ the percentage change in labor productivity of model Bo´ from November to December?