MGT 455 WEEK 1 FINANCE

MGT 455 WEEK 1  FINANCE
1.5 Lori Cook produces “Final Exam Care Packages” for
Resale by her sorority. She is currently working a total of 5 hours
Per day to produce 100 care packages.
a) What is Lori- productivity?
b) Lori thinks that by redesigning the package, she can increase
Her total productivity to 133 care packages per day. What will
be her new productivity?
c) What will be the percentage increase in productivity if Lori
makes the change? PX




1.7 George Kyparisis (using data from Problem 1.6)
determines his costs to be as follows:
􀁲􀀁 Labor: $10 per hour
􀁲􀀁 Resin: $5 per pound
􀁲􀀁 Capital expense: 1% per month of investment
􀁲􀀁 Energy: $.50 per BTU
Show the percent change in productivity for one month last year
Versus one month this year, on a multifactor basis with dollars as
the common denominator. PX

1.9 Lillian Fok is president of Lakefront Manufacturing,
A producer of bicycle tires. Fok makes 1,000 tires per day with the
following resources:

Labor:                 400 hours per day @ $12.50 per hour
Raw material:     20,000 pounds per day @ $1 per pound
Energy:               $5,000 per day
Capital costs:      $10,000 per day

a) What is the labor productivity per labor-hour for these tires at?
Lakefront Manufacturing?
b) What is the multifactor productivity for these tires at?
Lakefront Manufacturing?
c) What is the percent change in multifactor productivity if Fok
can reduce the energy bill by $1,000 per day without cutting
production or changing any other inputs? PX

1.11 Munson Performance Auto, Inc., modifies 375 autos per
year. The manager, Adam Munson, is interested in obtaining a measure
of overall performance. He has asked you to provide him with a
multifactor measure of last year- performance as a benchmark for
Future comparison. You have assembled the following data. Resource
Inputs were labor, 10,000 hours; 500 suspension and engine modification
kits; and energy, 100,000 kilowatt-hours. Average labor cost last
Year was $20 per hour, kits cost $1,000 each, and energy costs were $3
Per kilowatt-hour. What do you tell Mr. Munson? PX

1.12 Lake Charles Seafood makes 500 wooden packing
Boxes for fresh seafood per day, working in two 10-hour shifts.
Due to increased demand, plant managers have decided to operate
Three 8-hour shifts instead. The plant is now able to produce
650 boxes per day.
a) Calculate the company- productivity before the change in
Work rules and after the change.
b) What is the percentage increase in productivity?
c) If production is increased to 700 boxes per day, what is the
New productivity? PX