Explain what is the productivity of the application process

Assignment Help Business Management

Reference no: EM13216526

1. The New City Hospital has kept track of its patient billings and labor costs during the last two years. How has the hospital's labor productivity changed?

Two Years Ago Last Year

Total billings $10,230,000 $12,450,000

Labor costs $4,375,000 $5,200,000

2. Liberty Insurance Company processes application forms. The average output in a week is 600 claims. Currently the staff includes six full-time employees who work 40 hours per week and earn $18 per hour including fringe benefits. Management has invested in computer technology that has a weekly cost of $1,200. Materials and energy are not used in significant amounts.

a. What is the productivity of the application process?

b. Suppose Liberty decides to invest in additional computer equipment that will drive the weekly cost of information technology to $1,800. One of the application evaluators is retiring and will not be replaced. The remaining five processors should be able to do 650 applications per week with the new technology. What is the impact on productivity (please give both the new productivity ratio and the percentage change in productivity from part a)?

Reference no: EM13216526

Questions Cloud

Major reasons for increase in number of crime laboratories : List and explain the four major reasons for the increase in the number of crime laboratories in the United States since the 1960s.

Classify the statement of cash flows : How would you classify these two items in the statement of cash flows and is it important to have standard classification?

Estimate the required hp to operate the compressor : An air compressor takes air from outdoors at 28deg C and 101.2kPa and compresses it to 790kPa and 50 deg C. The air input to the compressor is found to be 22.67m3/hr. Estimate the required Hp to operate the compressor.

What should the diameter of the nozzle outlet be : What should the diameter of the nozzle outlet be in inches and what is the mass flow rate of steam through the nozzle in lbm/min?

Explain what is the productivity of the application process : Liberty Insurance Company processes application forms. The average output in a week is 600 claims. Currently the staff includes six full-time employees who work 40 hours per week and earn $18 per hour including fringe benefits. Management has inve..

Applying the information processing model : Applying the information processing model, why did some things make it into your short-term memory and some things into your long-term memory?

What is the approximate ductility expressed as a percentage : Estimate the energy that must have been supplied to cause the specimen to reach failure.

Different incentive plans : Select three different incentive plans. You may select individual plans, group plans, or a combination. List the pros and cons for each plan.

Explain the difference between the two methods : Explain the difference between the two methods and which method is required by the Australian Accounting standards?

User Account

All Pages