A company wants to calculate some metrics for benchmarking purposes. Use the table below to calculate...

A company wants to calculate some metrics for benchmarking purposes. Use the table below to calculate the single factor productivity for Equipment, Material, Human Capital, and Energy. As well, calculate the total factor productivity. Do the calculations for both the Company and the Competitor. Show all of your work in the space below; correct by unsupported answers will be assigned a score of zero. Provide a verbal conclusion of your findings.

	COMPANY [$1000s]	COMPETITOR [$1000s]
Equipment	70,000	85,000
Material	130,000	165,000
Human Capital	13,000	18,000
Energy	4,300	9,100
Sales	650,000	720,000

Expert Solution

Conclusion:

The company is doing well and it's productivity is higher than the competitor. It's using the Inputs in a more efficient way as compared with the competitor's utilisation. It can be noted that, single factor productivity and also multi factor productivity both are higher than that of its competitors.

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keosha answered 7 months ago

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