Us Manufacturing Company Operating Subsidiary Ldc Less Developed Country Shows Following R Q34312303

A U.S. manufacturing company operating a subsidiary in an LDC(less-developed country) shows the following results:

U.S.LDCSales (units)100,00020,000Labor (hours)20,00015,000Raw materials (currency)$20,000FC*20,000Capital equipment (hours)60,0005,000

*Foreign Currency unit

a. Calculate partial labor and capitalproductivity figures for the parent and subsidiary. (Roundyour answers to 2 decimal places.)

U.S.LDCLabor productivityCapital productivity

b. Compute the multifactor productivity figuresfor labor and capital together. (Round your answers to 2decimal places.)

U.S.LDCMultifactor productivity

c. Calculate raw material productivity figures(units/$ where $1 = FC 10). (Round your answers to 2decimal places.)

U.S.LDCRaw material productivity

Expert Answer

a)

Labor productivity = Sales/Labor hours

US = 100,000/20,000 = 5 units per labor hour

LDC = 20,000/15,000 = 1.33 units per labor hour

Capital productivity =