University:
Eastern Kentucky University
Course:
ECO 300 | Managerial Economics
Academic year:

2020
Views:

135

Pages:

3
Author:

Prince Sampson

HW1 1.1) Chuck Sox makes wooden boxes in which to ship motorcycles. Chuck and his three employees invest a total of 40 hours per day making the 120 boxes. a) What is their productivity? Productivity 1= Output 120 =3(boxes per hour ) = 40 Input b) Chuck and his employees have discussed redesigning the process to improve efficiency. If they can increase the rate to 125 per day, what will be their new productivity? Productivity 2= Output 125 =3.125(boxes per hour ) = 40 Input c) What will be their unit increase in productivity per hour? Their unit increase=Productivity 2− Productivity 1=3.125 −3= 0.125 (boxes per hour ) d) What will be their percentage change in productivity? Percentage= increasing unit 0.125 =4.2 % = Productivity 1 3 1.3) Number of labor(X) Total output = 57,600 per year Labor hours of each labor = 160 hour/month Productivity = 0.15 Productivity= ↔ 0.15= 1.7) Total Output Number of labors∗Labor hours∗12 months 57,600 ↔ X =200(labors) X∗160∗12 Productivity = Total Output Total Input Last year Input = Labor cost + Resin cost + Capital invested + Energy = (300*10) + (50*5) + (10000*0.01) + (0.5*3000) = 3000 + 250+ 1000 + 1500 = 4,850 Productivity =  Total Output 1000 = =0.206 Total Input 4850 Now: This year Input = (275*10) + (45*5) + (11000*0.01) + (0.5*2850) = 2750 + 225 + 110 + 1425 = 4510 Productivity = Total Output 1000 = =0.222 Total Input 4510 Change in productivity = 0.222−0.206 ∗100=¿7.8% 0.206 1.8) a) Productivity= 65 Output = =0.0096( Rugs /dollar) Input 520∗13 b) Multifactor productivity= Total output Labor + Material + Energy +Capital + Miscellaneous → Multifactor Productivity= 65 65 =0.00787(rugs per dollar) = ( 520∗13 ) +(100∗5 ) +(20∗50) 8260 1.9) a. Labor Productivity: Total output 1000 = =¿2.5 (Tires per hour) Productivity= Total input 400 b. Multifactor Productivity: 1000 Total output = Productivity= =0.025(Tires per hour ) Total input ( 400∗12.5 )+ ( 20000∗1 ) +5000+10000 c. Reduce energy in $ 1000: After reducing energy bills, a new productivity is Productivity= Percentage= Total output 1000 =0.0256 ( Tires per hour ) = Total input (400∗12.5 )+ ( 20000∗1 ) +( 5000−1000 )+ 10000 0.0256−0.025 ∗100=2.4 % 0.025 1.16) a) Productivity= ↔ 0.1= Total produced vans Totallabor hours 6600 Totallabor hours ↔ Labor hours=66000 (hours) Averagelabor hours= Totallabor hours 66000 = =220( Hours) Total labors 300 b) If productivity increased to 0.11 vans per labor-hour Productivity= ↔ 0.11= Total produced vans Totallabor hours 6600 Totallabor hours ↔ Labor hours=60000 (hours) Averagelabor hours= Totallabor hours 60000 = =200( Hours) Total labors 300

Chuck Sox Makes Wooden Boxes

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