Mariah Enterprises makes a variety of consumer electronicproducts. Its camera manufacturing plant is consideringchoosing between two different processes, named Alphaand Beta, which can be used to make two component partsA and B. To make the correct decision, the managers wouldlike to compare the labor and multifactor productivity ofprocess Alpha with that of process Beta. The value of processoutput for component A and B are $175 and $140 per unit,respectively. The corresponding overhead costs are $6,000and $5,000, respectively Process Alpha Process BetaProduct A B A BOutput (units) 50 60 30 80Labor ($) $1,200 $1,400 $1,000 $2,000Material ($) $2,500 $3,000 $1,400 $3,500a. Which process, Alpha or Beta, is more productive?b. What conclusions can you draw from your analysis?
Mariah Enterprises makes a variety of consumer electronic
products. Its camera manufacturing plant is considering
choosing between two different processes, named Alpha
and Beta, which can be used to make two component parts
A and B. To make the correct decision, the managers would
like to compare the labor and multifactor productivity of
process Alpha with that of process Beta. The value of process
output for component A and B are $175 and $140 per unit,
respectively. The corresponding overhead costs are $6,000
and $5,000, respectively
Process Alpha Process Beta
Product A B A B
Output (units) 50 60 30 80
Labor ($) $1,200 $1,400 $1,000 $2,000
Material ($) $2,500 $3,000 $1,400 $3,500
a. Which process, Alpha or Beta, is more productive?
b. What conclusions can you draw from your analysis?
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