Len Corp. reported net sales of $300 million last year and generated a net income of $66 million. Last year’s accounts receivabl
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Answer:
Part A:
Workers Needed=20.833≅21
Part B:
Productivity of individual worker=2.0833 parts/hour
Part C:
Multifactor productivity=0.0832 Parts/$
Explanation:
Part A:
Total parts =100,000
Workers needed= Total parts/(Parts per hour* hours per shift*Total Shifts)
Workers needed=20.833≅21
Part B:
Productivity of individual worker:
Part C:
Total cost of material= $10*100,000=$1,000,000
Capital Costl= $100,000
Total labor Cost=
Total labor Cost=$100,800
Multifactor productivity=Total Parts/(Total cost of material+capital cost+Total labor Cost)
Answer:
Choose Project A whose payback is 2.492 years and therefore falls within the 2.5 year required payback period.
Explanation:
Project A
Year Cash-flow Balance
0 (72,000) (72,000)
1 21,400 (50,600)
2 22,900 (27,700)
3 56,300 28,600
Project B
Year Cash-flow Balance
0 (81,000) (81,000)
1 20,100 (60,900)
2 22,200 (38,700)
3 74,800 36,100