Problem 1.

1
Chuck Sox Wooden box

Given Information:
Total Hours worked per day = 40 hrs. input
Number of boxes produced/day = 120 boxes output.

a) what is their labour productivity?

productivity per hour = Units produced / Hours Input
3 boxes/hour
b) Given:
Increase number of boxes produced/day = 125 boxes/day Given
productivity/hour = Units produced / Input
3.125 boxes/hour

c) Unit increase productiity /hr. = Increase Productivity - Original Productivity

0.125 boxes/hour

d) % change in Productivity = 4.17%

inal Productivity
Problem 1.3
Druehl, Inc. Hot Water

Given Information
Total annual production = 57600 hot water heaters
Each labor hour = 160 hrs/month
Labor productivity = 0.15 hot water heaters/labor hour

Suppose that the number of employed laborers are X

Productivity = Total output/(X*Labor hours*12 months)
Ans: X = Total ouput/(Productivity*Labor hours*12 months) = 200 employed laborers
output
Problem 1.5
Bowling Balls Production

Last Year Now Units Produced

Units Produced 1,000 1,000 Last Year 1,000
Labor (hours) 300 275 Now 1,000
Productivi
Resin (lbs.) 50 45 ty Change
Capital Invested ($) $10,000 $11,000 % Change
Energy (BTU) 3,000 2,850

multi-factor productivity ($)= output/Sum of input

 Factor Productivity
Labor (Hrs) Resin (lbs.) Capital Invested ($) Energy (BTU) Labor Productivity Resin (lbs.)
300.00 50.00 $10,000 3,000.00 3.33 20.00
275.00 45.00 $11,000 2,850.00 3.64 22.22
0.30 2.22
9.09% 11.11%

George Kyparisis rate accounts for 9,09% of output, above the ind
t/Sum of input average rise in productivity of 3%.
 Factor Productivity
Capital Invested ($) Energy (BTU)
0.10 0.33
0.09 0.35
-0.01 0.02
-9.09% 5.26%

ounts for 9,09% of output, above the industry

ty of 3%.
Problem 1.7
Hokey Min’s Kleen Karpet

The total quantity of rugs cleaned in October 65 rugs

Labor
Total number of labor hour used 520 hours
Labor cost $13 per hour
Total labor cost $6,760

Solvent
Total amount of solvent used 100 gallons
Cost of solvent $5 per gallon
Total solvent cost $500

Machine rental
Total 20 days
Cost of machine $50 per day
Total machine rental cost $1,000

a. What is the labor productivity per dollar?

Ans: LP = the total quantity of rugs cleaned in October/ Total labor
$0.0096 rugs per dollar
cost

b. What is the multifactor productivty?

Ans: Multifactor productivity = The total quantity of rugs cleaned in
$0.0079 rugs per dollar
October / The total cost of cleansing the rugs.
Problem 1.9

Last year Now

Production (dozen) 1,500 1,500 Production (dozen)
Labor (hours) 350 325 Last Year 1,500
Capital Investment ($) 15,000 18,000 Now 1,500
Productivi
Energy (BTU) 3,000 2,750 ty Change
% Change

Productivity = Units produced / Inp

% Change = Total change / Original

There was a 16,67% decline in the p

energy productivity measure also s
15%.
 Factor Productivity
Labor (Hrs) Capital Invested ($) Energy (BTU) Labor Productivity Capital Invested ($) Energy (BTU)
350.00 $15,000 3,000.00 4.29 0.10 0.50
325.00 $18,000 2,750.00 4.62 0.08 0.55
0.33 -0.02 0.05
7.69% -16.67% 9.09%

vity = Units produced / Input used

e = Total change / Original input

as a 16,67% decline in the productivity of capital investment. However, the labor productivity measure and the
productivity measure also show a rise in productivity, by 7,69% and 9,09%, respectively, although not by more than