In 2015, Choctaw Company implements a new process affecting labor and materials. The following reported data are provided to evaluate the effect on the company€™s productivity:

Required:
1. Calculate the productivity profile for 2014.
2. Calculate the productivity profile for 2015, and comment on the effect of the new production and assembly process.
3. What if the labor hours used in 2015 were 112,500? What does comparison of the 2014 and 2015 profiles now communicate?

Transcribed Image Text:

Number of units produced Labor hours used Materials used (lbs.) 2014 540,000 108,000 2015 450,000 75,000 1,500,000 2,160,000 1