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Operations Management: Productivity Ratios

1. A computer high tech keyboards producer has an automated assembly line. The cost to produce one unit of a these computer keyboards consists of labor ($15); materials ($35); and overhead ($5). The selling price for these CDs is $75 a unit.

A. What is the current total productivity ratio?
B. To achieve 10% gain in total productivity by reducing materials cost only, by what percentage must those costs be reduced?
C. {4 points}. Suppose in the costs and revenues for 2010-1011 for this firm was as follows:

Year......................................2010.......................2011
Revenue.............................$427500....................$513750
Labor...................................$82000......................$91000
Materials.............................$184000....................$100100
Overhead............................$32000.......................$35400

Calculate the productivity ratios AND the percentage change in productivity for each from 2010 to 2011.

Solution Summary

Operations management productivity ratios are examined. The cost and revenues for 2010-211 are determined.

$2.19