solution

Use the following information to answer questions 18-24

Grumman Manufacturing has implemented several programs to improve its productivity. Their target was to increase the productivity by 12% in 2020. They have asked you to evaluate the firm’s productivity by comparing 2020’s performance with 2019. Labor costs average $20 per hour and each kWh costs 20 cents. The following data are available.

	Year = 2019	Year = 2020
Output	21,000 units	24,200 units
Labor Hours	2400	2640
Energy (kWh)	76,000	82,200
Overhead	$16,600	$16,000

What is the total labour cost for 2019?

What is the energy cost for 2019?

What is the multifactor productivity per $ input for 2019?

		0.3233/$
		3.7993/$
		0.2632/$
		0.3322/$
		0.4374/$

What is the total labour cost for 2020?

What is the multifactor productivity per $ input for 2020?

		0.2837/$
		3.5248/$
		0.3438/$
		0.3832/$
		0.4583/$

What is Grumman Manufacturing’s productivity improvement between 2019 and 2020?

		8.62%
		7.79%
		0.89%
		-8.62%
		7.22%

Has Grumman reached their target (yes/no?) and discuss why.