Provide calculations for multifactor productivity in


Patrick Cooper, the production manager of Cooper Cakes, is preparing his quarterly report, which is to include a productivity analysis for his department. One of the inputs is cake production data prepared by Bell, his operations analyst. The report, which she gave him this morning, showed the following: 2015 2016 Production (units) 5,700 8,000 Raw material used (bags of cake ingredients) 650 950 Labor hours 23,500 26,500 Capital cost applied to the department ($) $50,000 $80,000 Patrick knew that his labor cost per hour had increased from an average of $10 per hour to an average of $12 per hour, primarily due to a move by management to become more competitive with the new Sprinkles Cupcakes opening in the area. He also knew that his average cost per bag of raw material had increased from $5 to $7.50 per bag. He was concerned about the accounting procedures that increased his capital cost from $50,000 to $80,000, but earlier discussions with his boss suggested that there was nothing that could be done about that allocation. Patrick wondered if his productivity had increased at all. He called Bell into the office and conveyed the above information to her and asked her to prepare this part of the report. Provide calculations for multifactor productivity in Units/Dollar for 2016 Multifactor productivity for 2016 (round to 4 decimal places):

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Operation Management: Provide calculations for multifactor productivity in
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