# Eric Johnson (using data from problem 1.6) determines his costs to be as follows:

\$1.00

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#### Specs

SKU: AT-1011 Category:

## Description

QUESTION:

Eric Johnson (using data from problem 1.6) determines his costs to be as follows:

? Labor: \$10 per hour

? Resin: \$5 per pound

? Capital expense: 1% per month of investment

? Energy: \$.50 per BTU.

Show the percent change in productivity for one month last year versus one month this year, on a multifactor basis with dollars as the common denominator.

In problem 1.6, Eric Johnson makes billiard balls in his New England plant. With recent increases in his costs, he has a newfound interest inefficiency. Eric is interested in determining the productivity of his organization. He would like to know if his organization is maintaining the manufacturing average of a 3% increase in productivity. Re has the following data representing a month from last year and an equivalent month this year:

Show the productivity percentage change for each category and then determine the improvement for labor-hours, the typical standard for comparison.

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