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1.

120boxes
1.1 (a)
=3.0boxes/hour
40hours

Production
Labor hr. @ $10
Resin @ $5
Capital cost/month
Energy

125boxes
(b)
=3.125boxes/hour
40hours

(c)Changeinproductivity=0.125boxes/hour
Percentagechange=

Last Year

This Year

1,00
0
$3,000
250
100
1,50
0
$4,850

1,00
0
$2,750
225
110
1,42
5
$4,510

0.125boxes
= 4.166%
3.0

(d)

[(1,000/4,850) (1,000/4,510)]

(1,000/4,850)

0.2060.222
0.016
=
=0.078fewerresources
0.206
0.206

7.8%improvement*
*withroundingto3decimalplaces.
1.6

Resource

Labor

Resin

Capital

Energy

Last Year
1,000
300

1,000
50

=3.33

=20

1,000
10,000

1,000
3,000

=0.1

=0.33

This Year
1,000
275
1,000
45

=3.64

0.31

=22.22

2.22

1,000
11,000
1,000
2,850

Change

=0.09

=0.35

0.01

Percent
Change
0.31
3.33
2.22
20

=11.1%

0.01
0.1
0.02

0.02

=9.3%

0.33

=10.0%

=6.1%

1.9 (a)Laborproductivity=1,000
tires/400hours=2.5tires/hour.

(b)Multifactorproductivityis1,000tires/(400
$12.50+20,000$1+$5,000+$10,000)=
1,000tires/$40,000=0.025tires/dollar.
(c)Multifactorproductivitychangesfrom1,000/40,000to1,000/39,000,orfrom0.025to0.02564;theratiois1.0256,so
thechangeisa2.56percentincrease.

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