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Serra’s Ceramics spent 3 000 MU on a new kiln last year in the belief that it would cut energy usage 25 % over the old kiln This kiln is an oven that turns green ware into finished pottery

 Serra’s Ceramics spent 3 000 MU on a new kiln last year, in the belief that it would
cut energy usage 25 % over the old kiln. This kiln is an oven that turns “green ware” into
finished pottery. Serra is concerned that the new kiln requires extra labor hours for its
operation. Serra wants to check the energy saving of the new oven, and also to look over
other measures of their productivity to see if the change really was beneficial. Serra has
the following data to work with: Last Year This Year Production (finished units) 4000
4000 Green ware (pounds) 5000 5000 Labor (hrs) 350 375 Capital (MU) 15000 18000
Energy (kWh) 3000 2600 Were the modifications BENEFICIAL? (5 marks)
2 . The Cool-Tech Co. produces various types of fans. In May, the company produced
1728 window fans at a standard price of 40 MU. The Co. has 12 direct labour employees
whose compensation (including wages and fringe benefits) amounts to 21 MU/hour.
During May, window fans were produced on 9 working days 9of 8 hours each), and
other products were produced on other days. a. Determine the productivity of the

Jun 19 2020 View more View Less

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