Question

A U.S. manufacturing company operating a subsidiary in an LDC (less-developed country) shows the following results: U.S. LDC Sales (units) 107,000 20,200 Labor (hours) 20,600 15,600 Raw materials (currency) $ 19,880 (US) 20,600 (FC) Capital equipment (hours) 61,800 5,660 (FC) Foreign Currency unit a. Calculate partial labor and capital productivity figures for the parent and subsidiary. (Round your answers to 2 decimal places.)

Answer 1

Please refer to the below explanations

Step-by-step explanation:

• Partial labor productivity

= Sales(units) / Labor(hours)

U.S = 107,000 / 20,600

U.S = 5.19

LDC = 20,200 / 15,600

LDC = 1.29

•Capital equipment productivity

= Sales(units) / Capital equipment(hours)

U.S = 107,000 / 61,800

U.S = 1.73

LDC = 20,200 / 5,660

LDC = 3.57