COMPUTING PRODUCTIVITY MEASURES
A division of Miller Chemicals produces water purification crystals for swimming pools. The major inputs used in the production process are labor, raw materials, and energy.
The table shows the amount of output produced and input used for 2009 and 2010. Calculate the total productivity measure, the multifactor productivity measures, and the partial productivity measures for both years. What do these measures tell you about this company?
|
Output
|
2009
|
2010
|
|
Pounds of crystals
|
100,000
|
150,000
|
|
Input
|
|
|
|
Direct Labor Hours
|
20,000
|
28,000
|
|
Direct Labor Cost
|
$180,000
|
$350,000
|
|
Energy Used (kwh)
|
350,000
|
400,000
|
|
Energy Cost
|
$5,000
|
$6,000
|
|
Raw Materials Use (lb)
|
120,000
|
185,000
|
|
Raw Material Cost
|
$ 30,000
|
$ 40,000
|