Assignment:
Q: Trek is a manufacturing company that produces high-end bicycles. Their prime road bike, the MadOne, can be fully customized through a program called Project One. Last year they rolled out 1,370 bikes which sold on average for $7,200 and used the following inputs as found in the table below:
|
Inputs
|
Amount
|
Cost ($)
|
|
Labor hours
|
15,500
|
25.75
|
|
OCLV Carbon (square feet)
|
1,400
|
10.08
|
|
Rubber (pounds)
|
3,025
|
3.61
|
|
Paint (gallons)
|
420
|
24.21
|
|
Energy (kWs)
|
11,352,609
|
0.11
|
What was last year's single-factor productivity for Trek in terms of rubber (not dollars)?
What was last year's single-factor productivity for Trek in terms of OCLV Carbon (input and output units, not dollars)?
What was last year's multi-factor productivity for Trek in terms of dollars? In other words, how many dollars of revenue were generated for each dollar of input?
Suppose in the coming year they expect their multi-factor productivity to increase by 8% over last year (what you just computed). What should be their multi-factor productivity in the coming year?