Question

A U.S. manufacturing company operating a subsidiary in an LDC (less-developed country) shows the following results: U.S. LDC Sales (units) 100,505 19,600 Labor (hours) 19,550 14,550 Raw materials (currency) $ 20,500 19,550 (FC) Capital equipment (hours) 58,600 4,550 *Foreign Currency unit a.

a. Calculate partial labor and capital productivity figures for the parent and subsidiary. (Round your answers to 2 decimal places.)
b. Compute the multifactor productivity figures for labor and capital together. (Round your answers to 2 decimal places.)
c. Calculate raw material productivity figures (units/$ where $1

Answer 1

Part A:

Labur Productivity:

For US=5.14, LDC=1.35

Capital Productivity:

For US=1.72 LDC=4.31

Part B:(Multi factor productivity)

For US=1.29 LDC=1.03

Part C: (Raw material productivity)

For US=4.90 LDC=10.02

Step-by-step explanation:

Part A:

Labur Productivity:

For US:

`Partial Labor Productivity=(Sale(units))/(Labour(hours) \\Partial Labor Productivity=(100505)/(19550) \\Partial Labor Productivity=5.14`

For LDC:

`Partial Labor Productivity=(Sale(units))/(Labour(hours) \\Partial Labor Productivity=(19600)/(14550) \\Partial Labor Productivity=1.35`

Capital Productivity:

For US:

`Capital Productivity=(Sale(units))/(Capital Equipment) \\Capital Productivity=(100505)/(58600)\\Capital Productivity=1.72`

For LDC:

`Capital Productivity=(Sale(units))/(Capital Equipment) \\Capital Productivity=(19600)/(4550)\\Capital Productivity=4.31`

Part B:

For US:

`Multifactor Productivity=(Sales(units))/(labour(Hours) + Capital Equipment(hours))\\ Multifactor Productivity=(100505)/(19550+58600) \\Multifactor Productivity=1.29`

For LDC:

`Multifactor Productivity=(Sales(units))/(labour(Hours) + Capital Equipment(hours))\\ Multifactor Productivity=(19600)/(14550+4550) \\Multifactor Productivity=1.03`

Part C:

For US:

`Raw material productivity=(Sales(Hour))/(Raw Material) \\ Raw material productivity=(100505)/(20500) \\ Raw material productivity=4.90`

ForLDC:

Converting Raw material FC into $ (1$=10FC)

Raw Material =19550/10=$1955

`Raw material productivity=(Sales(Hour))/(Raw Material) \\ Raw material productivity=(19600)/(1955) \\ Raw material productivity=10.02`