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1. George Kyparisis makes bowling balls in his Miami plant. With recent increases in his costs, he has a newfound interest in efficiency. George is interested in determining the productivity of his organization. He would like to know if his organization is maintaining the manufacturing average of 3% increase in productivity per year. He has the following data representing yearly equivalent production.
Table #1
Year: 2019
Year: 2020
Units Produced
2,000
3,000
Labor (hours)
300
275
Resin (Pounds)
50
45
Capital Invested ($)
10,000
11,000
Energy (BTU)
3,000
2,850
George Kyparisis (using the data from table #1 above)
a. Determine his costs of production in each category between 2019 and 2020 as follows:
· Labor: $ 10 per hour
· Resin: $ 5 per pound
· Capital expense: 5% of investment
· Energy: $. 50 per (BTU)
NOTE!!!! (SHOW YOUR WORK HERE) (14points)
Year: 2019
Year: 2020
Units Produced
2,000
3,000
Labor (hours)
Resin (Pounds)
Capital Invested ($)
Energy (BTU)
b. Calculate the percentage change in the cost of production in each category between 2019 and 2020.
NOTE!!!! (SHOW YOUR WORK HERE) (20points)
Year: 2019
Year: 2020
Units Produced
2,000
3,000
Labor (hours)
Resin (Pounds)
Capital Invested ($)
Energy (BTU)
c. Calculate the percentage change in production between 2019 and 2020.
(5points)
d. Calculate the percentage change in the total cost of production between 2019 and 2020.
(5points)
e. Explain your answers clearly, in reference to questions “c” and “d” above.
(6points)
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