# George Kyparisis makes bowling balls in his Miami plant

George Kyparisis makes bowling balls in his Miami plant. With recent increases in his costs, he has a newfound interest in inefficiency. George 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 per year. He has the following data representing yearly equivalent production.

YEAR: 2012

YEAR: 2013

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

1. Show the changes in productivity in each of the inputs between 2012 &amp; 2013 and then determine the productivity percentage change for each category.

Quantity

YEAR; 2012

YEAR; 2013

Units Produced

2,000

3,000

Labor (hours)

Resin (Pounds)

Capital Invested (\$)

Energy (BTU)               (16points)

1. George Kyparisis (using the data from the table in problem #1 above) determines his 2012 and 2013 costs to be as follows: •

-Labor: \$ 10 per hour

– Resin: \$ 5 per pound

– Capital expense: 5% of investment

– Energy: \$.50 per (BTU)

2012

2013

Production

2,000

3,000

Labor @\$10/hr.

Resin@\$5

Capital cost @ 5%

Energy @ \$.50

-Show the percent change in productivity between 2012 and 2013, on a multifactor basis with dollars as the common denominator. (20points)