Purchase Solution

US manufacturing company

Not what you're looking for?

Ask Custom Question

(Prob. 2: Productivity)

A US manufacturing company operating a subsidiary in an LDC (Less Developed Country) shows the following results:

US LDC
Sales (units) 100,000 20,000
Labor (hrs.) 20,000 15,000
Raw Mat'l (currency) $20,000 FC 20,000
Capital equipment (hrs)60,000 5,000

(A) Compute the multifactor productivity figures for labor and capital together. Are the results better?
(B) Calculate raw material productivity figures (units/$, where $1 = FC 10). Explain why these figures might be greater in the subsidiary.

Purchase this Solution

Solution Preview

A US manufacturing company operating a subsidiary in an LDC (Less Developed Country) shows the following results:

US LDC
Sales (units) 100,000 20,000
Labor (hrs.) 20,000 15,000
Raw Mat'l (currency) $20,000 FC 20,000
Capital equipment (hrs)60,000 5,000

(A) Compute the multifactor productivity figures for labor and capital together. Are the results better?

US

Total Sales = 100,000

Labor = ...

Solution provided by:
Education
  • BE, Bangalore University, India
  • MS, University of Wisconsin-Madison
Recent Feedback
  • "Your explanation to the answers were very helpful."
  • "What does 1 and 0 means in the repair column?"
  • "Went through all of the formulas, excellent work! This really helped me!"
  • "try others as well please"
  • "Thank you, this helped a lot. I was not sure how to plug in those numbers to a formula. This was a great help. Now I have to figure out how to explain cost of capital is used in net present value analysis, and how cost of capital is used in net present value analysis. This stuff gets confusing."
Purchase this Solution


Free BrainMass Quizzes
Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.