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1. A computer high tech keyboards producer has an automated assembly line. The cost to produce one unit of a these computer keyboards consists of labor ($15); materials ($35); and overhead ($5). The selling price for these CDs is $75 a unit.

1. A computer high tech keyboards producer has an automated assembly line. The cost to produce one unit of a these computer keyboards consists of labor ($15); materials ($35); and overhead ($5). The selling price for these CDs is $75 a unit.

A. What is the current total productivity ratio?
B. To achieve 10% gain in total productivity by reducing materials cost only, by what percentage must those costs be reduced?
C. {4 points}. Suppose in the costs and revenues for 2010-1011 for this firm was as follows:

 
 

Year………………………………..2010…………………..2011
Revenue………………………..$427500………………..$513750
Labor……………………………..$82000………………….$91000
Materials………………………..$184000………………..$100100
Overhead……………………….$32000…………………..$35400

Calculate the productivity ratios AND the percentage change in productivity for each from 2010 to 2011.

 
 


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