Solved Problems
(See student companion site for Excel template.)
• Problem 1
Bluegill Furniture is a small furniture shop that focuses on making kitchen chairs. The weekly dollar value of its output, including finished goods and work in progress, is $14,280. The value of inputs, such as labor, materials, and capital, is approximately $16,528. Compute the total productivity measure for Bluegill Furniture.
• Before You Begin:
In this problem you are being asked for the total productivity. Recall that it is simply the ratio of total output over input.
• Solution
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• Problem 2
Bluegill has just purchased a new sanding machine that processes 17 chairs in 8 hours. What is the productivity of the sanding machine?
• Before You Begin:
In this problem you are being asked for machine productivity, which is a partial productivity measure.
• Solution

• Problem 3
Bluegill has hired two new workers to paint chairs. They have painted 10 chairs in 4 hours. What is their labor productivity?
• Before You Begin:
Remember that you should compute the labor productivity of both workers combined.
• Solution

• Problem 4
On average, Bluegill produces 35 chairs per day. Labor costs average $480, material costs ...
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