BUSOBA 3220: Midterm MATH Practice Notes and Observation

R1 Productivity Ratios

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R1 Productivity =

Output/Input

R1 Partial Measures =

Output/Labor

R1 Multifactor Measures =

Output/ Labor + Capital + Materials

R1 Finding Rev. After Discount:

• Rev (% of Sales) (% Discount) = x (Discount)

• Original Rev - x (Discount) = Rev After Discount

Total RM =

$/Unit * Sold

Total Labor =

Sold * Hours/Unit * $/Hour

Total Input is

Labor + Raw Materials + Overhead (Whatever else is under inputs, like Capital)

Labor Productivity is

Output/Labor

If trying to find this year _% increase in output,

• take last years' output, multiply it by the _% increase, take answer, and add to last years' output.

• Don't forget to ADD.

Don't round

• intermediate steps of % change calculations.

• WAIT TO ROUND.

The question: "If during 2015 a 20% discount was applied to 13% of sales, the new Multifactor productivity = ____" is an example of

• finding revenue after discount questions.

• Will first find the discount, then have to subtract it by the original revenue.

With finding revenue after discount questions,

the inputs stay the same.

The question: "How many premium cars do they need to achieve a productivity ratio of 7?" requires you to

• set up an equation where both outputs with variables are the numerator, both inputs with variables are the denominator, divide the outputs and inputs, and equal to 7.

• Solve like you would in a traditional math class.

Discount and markdown

are the same.

Find Output:

• Units Sold * Value of Each Unit = Total Value of Units Sold $

• Total Value of Units Sold * % Sold * % Markdown

• Subtract the two answers.

Question: What percent improvement in labor productivity? / What is the percent change?

• Find labor productivity for the two weeks. Then, find the % change.

• For the input, do HR * DAYS * EMPLOYEES

% Change = New - Old / Old

(New - Old / Old) * 100

Raw Materials =

Units * Material Cost

Labor =

People * HR Per Week * $ Per Hour

Question: What is the final output value for this interconnected process?

At the end, Output * Fraction to get answer.

If there is a change in units or a certain percent passes inspection,

• finding the total amount earned in $ will include the new unit.

• EVERYTHING ELSE uses the old unit or the amount before the inspection.

Units * HR of Labor. Then,

take answer and employees payment per hour.