Did lucas meet the 25% increase labor productivity

Assignment Help Microeconomics

Reference no: EM133662635

Assignment:

Springfield brewery owned by Lucas Smith in Portland, Oregon. Lucas decided to invest in new, state-of-the-art brewing equipment to enhance the quality of his beer and increase production capacity. His goal was to see if the new equipment could help achieve a 25% increase labor productivity. Lucas is also interested in evaluating the changes in other productivity measures after the upgrade. He has gathered the following data representing a month from last year and an equivalent month this year after the installation of the new equipment: Data: Metric Last Year This Year Beer Produced (gallons) 3,000 3,800 Labor (hours) 800 780 Hops Supply (pounds) 500 550 Capital Invested ($) 40,000 50,000 Energy (KWh) 2,000 1,900 Questions:

a. Calculate the productivity change in percent for each of the inputs (Labor, Hops Supply, Capital, and Energy). Which single factor productivities increased?

b. Did Lucas meet the 25% increase labor productivity? Why or why not?

c. Explain how upgrading to more efficient brewing equipment might lead to an increase in labor productivity.

Reference no: EM133662635

Questions Cloud

How the company might improve its sustainability outcomes : How the company might improve its sustainability outcomes. justify their recommendations with evidence that indicates the possible need for improvement

Wax would have more benefits from remaining a small firm : Wax would have more benefits from remaining a small firm rather than becoming a large firm. give analysis 3 points advantage

Explain the strengths and weaknesses of each policy : Explain the strengths and weaknesses of each policy. Explain how the health policy you selected might impact the role of the nurse in each country.

Can the contract be annulled : One of the shareholders of ABC Corporation went to court and sought to annul the contract entered into by Joe. Can the contract be annulled

Did lucas meet the 25% increase labor productivity : Calculate the productivity change in percent for each of the inputs (Labor, Hops Supply, Capital, and Energy). Which single factor productivities increased?

What type of integration is this : You are a CEO of a soft drink company, and you want to expand your business. You have referred to your business consultants, and they offered to join a leading

Describe the pathophysiological stages of kidney stones : Describe in detail the pathophysiological stages of kidney stones in a working 45-year-old adult male.

Expense one month of the property insurance cost : Expense one month of the property insurance cost that you paid for on the first of the month.

What additional mitigation plans would you recommend : What additional mitigation plans would you recommend to give additional resources and protection to this population?

User Account

All Pages