Looking for cost savings in administrative areas the vicepre
Looking for cost savings in administrative areas, the vice-president for human resources at McMahon Corporation asked his assistant to collect data on the employee cafeterias in the four McMahon locations around the country. After two days, the assistant returned with the following data for the previous year:
Mobile Pecos Spokane Lansing
Labor-hours 37,100 57,800 22,500 5,700
Meals served 111,000 217,000 72,000 13,800
Required:
a. Compute the partial productivity measures for labor for the four locations. (Round your answers to 3 decimal places.)
Solution
Partial Productivity = Output / Input
Here Output = Meals Served
Input = Labour Hours
Therefore ,
| Particulars | Mobile | Pecos | Spokane | Lansing |
| Labour Hours ( A) | 37100 | 57800 | 22500 | 5700 |
| Meals served ( B) | 111000 | 217000 | 72000 | 13800 |
| Partial Productivity ( B/ A) | 2.992 | 3.754 | 3.2 | 2.421 |
