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CAPE Management of Business Unit 2 · 2010 · Paper 2 · Question 2(a)(ii)

Afoor's, a manufacturing company, provided data on materials used and output of workers over a five-week period. Standard price of materials is 140 per unit. Employees work 40-hour weeks at 12 per hour. Overhead is 1.5 times weekly labour cost, and material cost is $6 per pound.

Explain the implication of the productivity figures for the company.

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Other parts of this question

  1. 2(a)(i)Compute the labour productivity for EACH of the FIVE weeks shown, using output per worker per hour as a measure of labour productivity.[10 marks]
  2. 2(b)Afoor's has been experiencing low productivity at the factory. Discuss THREE steps that the company can take towards improving productivity.[12 marks]

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