Crystal Cleaners had the following results in 2003 and 2006:

Crystal used the same facilities in 2006 as in 2003. However, over the past four
years the company put more effort into training its employees. The manager of

Crystal was curious about whether the training had increased labour productivity.

1. Compute a measure of labour productivity for 2006 based entirely on
physical measures. Do the same for 2003. That is, from the data given,
choose measures of physical output and physical input, and use them to
compare the physical productivity of labour in 2006 with that in 2003.
2. Compute a measure of labour productivity for 2006 based entirely on
financial measures. Do the same for 2003. That is, from the data given,
choose measures of financial output and financial input, and use them to
compare the financial productivity of labour in 2006 with that in 2003.
3. Suppose the following productivity measure were used:

Because of inflation, each 2003 dollar is equivalent to 1.4 2006 dollars.
Compute appropriate productivity numbers for comparing 2006 productivity
with 2003 productivity.

Transcribed Image Text:

2003 2006 Kilograms of laundry processed 680,000 762,500 Sales revenue $360,000 $697,000 Direct labour hours worked 22,550 23,325 Direct labour cost $158,000 $249,000