16.

Total productivity = output / input

Output = quantity sold*price per unit = 50000*3.5 = $ 175,000

Input = labour + raw material + component cost = (30000 + 15350 + labour cost)

labour cost = labour hours* hourly rate = 620*7.5 = $ 4650

Input = 30000+15350+4650 = $ 50,000

productivity = 175000/50000 = 3.5

17.

Deluxe car 4,000 units sold $8,000/car = $ (4000*8000) = $ 32,000,000 sales

Labour hours (deluxe) = 20000

Labour procuctivity for deluxe cars = 32000000 / 20000 = $ 1600 per hour

Limited car 6,000 units sold $9,500/car = $(6000*9500) = $ 57,000,000 sales

Labor, Limited = 30,000

Labour productivity = revenue generated by labour / no. of labour hours = $

57,000,000 / 30000 = $1900 per hour

Thus, Labour productivyt is greater in case of limited cars.

19.

Partial Partial
Last This
Productivit productivit
year year
y (last year) y (this year)

Output:Sale 20000 22000

s 0 0
Input:
30000 40000 6.67 5.5
labour

Raw
35000 45000 5.71 4.89
Materials

Energy 5000 6000 40 36.67

Capital 50000 50000 4 4.4

other 2000 3000 100 73.33

Total Input (last year) =

$12200
0

Total productivity(last year) = output / input = 200000 / 122000 = 1.639

Total input (this year) =

$14400
0

Total productivity(last year) = output / input = 220000 / 144000 = 1.527

Partial productivity for Capital is minimum. However, capital forms the biggest
portion of the costs. Thus, Capital is utilised most inefficiently, followed by Raw
materials & Labour

20.

Navy contract = 2300 devices

labour hours = 25 workers * (40 hours per week) = 1000 hours per week

no. of weeks = 2

labour hours = 2000 hours

Labour productivity = 2300 / 2000 = 1.15 devices per labour hour

Army contract = 5500 devices

labour hours = 35 workers * (40 hours per week) = 1400 hours per week

no. of weeks = 3

labour hours = 4200 hours

Labour productivity = 5500 / 4200 = 1.31 devices per labour hour

Workers are more productive in the army contract.

21.

April

Sales = $ 45000

No. full time workers = 8

No. of part time workers = 7

no. hours put in by part time workers = 10

Labour hours = (8*40 + 7*10) hours per week = 390 hours per week

no. of weeks = 4

Total labour hours = 390*4 = 1560

Labour productivity = sales / labour hours = 45000 / 1560 = 28.85

May

Sales = $ 56000

No. full time workers = 8

No. of part time workers = 9

no. hours put in by part time workers = 15

Labour hours = (8*40 + 9*15) hours per week = 455 hours per week

no. of weeks = 4

Total labour hours = 455*4 = 1820

Labour productivity = sales / labour hours = 56000 / 1820 = 30.77

Percentage change in productivity = [(30.77-28.85) / 28.85]*100 = 6.65 %

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Answer 1
3)
2)