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Calculate the multifactor productivity composed of labor

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Reference no: EM1394391

In a 1-year period, the Productive Components Corporation has shipped units worth $1,200,000 to its customers. It produced units worth $250,000 for finished goods (FG) inventory. PCCorp has $50,000 of work in process (WIP) units. During the same

1-year period, PCCorp had a labor bill of $140,000. Its capital expenses for the year are calculated to be $430,000. Materials were purchased costing $530,000. Energy expenses were $225,000 and miscellaneous expenses were estimated to $75,000.

2. Calculate the multifactor productivity composed of labor and capital units shipped plus finished goods for PCCorp. In place of fixed costs use (sales + finished goods); set variable cost to 0; in place of selling price use (labor cost + capital expenses). Breakeven volume in solution is equal to multifactor productivity.

3. What is PCCorp's total productivity? Abbreviating, in place of FC use (sales + FG + WIP); VC = 0, in place of SP, we total all costs, BEV in solution is equal to total productivity.

4. What is PCCorps capital productivity?

Reference no: EM1394391

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