Prevost Chemicals manufactures an industrial solvent at its only processing plant. A liquid chemical and labor are the two primary inputs. All other resources are included in manufacturing overhead. The plant never has any work-in-process or finished goods inventories. Information from the previous four periods of production follows: Period 1Period 2Period 3Period 4Chemical input (gallons)125,000129,280128,000120,000Labor input (hours)12,50011,20015,00010,100Solvent sales (gallons)110,000113,120120,000103,020Average price of chemical per gallon$ 2.00$ 2.10$ 1.95$ 2.25Average wage rate per hour28.0026.0031.0034.00Average sales price per gallon10.2610.009.8010.60Manufacturing overhead (total)236,000245,312245,400243,080 Required:c. Compute the total factor productivity for the four periods. Required A Required B Required CCompute the total factor productivity for the four periods.Total FactorProductivityPeriodPeriod 1Period 2Period 3Period 4< Required BRequired C>

In order to calculated total factor productivity, we would use the formula,-Total Factor…

Answered: Required A Required B Required C…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Prevost Chemicals manufactures an industrial solvent at its only processing plant. A liquid chemical and labor are the two primary inputs. All other resources are included in manufacturing overhead. The plant never has any work-in-process or finished goods inventories. Information from the previous four periods of production follows:

	Period 1	Period 2	Period 3	Period 4
Chemical input (gallons)	125,000	129,280	128,000	120,000
Labor input (hours)	12,500	11,200	15,000	10,100
Solvent sales (gallons)	110,000	113,120	120,000	103,020
Average price of chemical per gallon	$ 2.00	$ 2.10	$ 1.95	$ 2.25
Average wage rate per hour	28.00	26.00	31.00	34.00
Average sales price per gallon	10.26	10.00	9.80	10.60
Manufacturing overhead (total)	236,000	245,312	245,400	243,080