Did lucas meet the 25% increase labor productivity

Reference no: EM133662635

Assignment:

Springfield brewery owned by Lucas Smith in Portland, Oregon. Lucas decided to invest in new, state-of-the-art brewing equipment to enhance the quality of his beer and increase production capacity. His goal was to see if the new equipment could help achieve a 25% increase labor productivity. Lucas is also interested in evaluating the changes in other productivity measures after the upgrade. He has gathered the following data representing a month from last year and an equivalent month this year after the installation of the new equipment: Data: Metric Last Year This Year Beer Produced (gallons) 3,000 3,800 Labor (hours) 800 780 Hops Supply (pounds) 500 550 Capital Invested ($) 40,000 50,000 Energy (KWh) 2,000 1,900 Questions:

a. Calculate the productivity change in percent for each of the inputs (Labor, Hops Supply, Capital, and Energy). Which single factor productivities increased?

b. Did Lucas meet the 25% increase labor productivity? Why or why not?

c. Explain how upgrading to more efficient brewing equipment might lead to an increase in labor productivity.

Reference no: EM133662635

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