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

Respuesta :

Answer:

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

Explanation:

Part A:

Labur Productivity:

For US:

[tex]Partial Labor Productivity=\frac{Sale(units)}{Labour(hours} \\Partial Labor Productivity=\frac{100505}{19550} \\Partial Labor Productivity=5.14[/tex]

For LDC:

[tex]Partial Labor Productivity=\frac{Sale(units)}{Labour(hours} \\Partial Labor Productivity=\frac{19600}{14550} \\Partial Labor Productivity=1.35[/tex]

Capital Productivity:

For US:

[tex]Capital Productivity=\frac{Sale(units)}{Capital Equipment} \\Capital Productivity=\frac{100505}{58600}\\Capital Productivity=1.72[/tex]

For LDC:

[tex]Capital Productivity=\frac{Sale(units)}{Capital Equipment} \\Capital Productivity=\frac{19600}{4550}\\Capital Productivity=4.31[/tex]

Part B:

For US:

[tex]Multifactor Productivity=\frac{Sales(units)}{labour(Hours) + Capital Equipment(hours)}\\ Multifactor Productivity=\frac{100505}{19550+58600} \\Multifactor Productivity=1.29[/tex]

For LDC:

[tex]Multifactor Productivity=\frac{Sales(units)}{labour(Hours) + Capital Equipment(hours)}\\ Multifactor Productivity=\frac{19600}{14550+4550} \\Multifactor Productivity=1.03[/tex]

Part C:

For US:

[tex]Raw material productivity=\frac{Sales(Hour)}{Raw Material} \\ Raw material productivity=\frac{100505}{20500} \\ Raw material productivity=4.90[/tex]

ForLDC:

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

Raw Material =19550/10=$1955

[tex]Raw material productivity=\frac{Sales(Hour)}{Raw Material} \\ Raw material productivity=\frac{19600}{1955} \\ Raw material productivity=10.02[/tex]