Assignmt. 15 Chapter 15 eBook Show Me How Productivity Measurement, Technical and Allocative Efficiency, Partial Measures Bellamy Company produces handcrafted pottery that uses two inputs: materials and labor. During the past quarter, 21,000 units were produced, requiring 84,000 pounds of materials and 42,000 hours of labor. An engineering efficiency study commissioned by the local university revealed that Bellamy can produce the same 21,000 units of output using either of the following two combinations of inputs: Combination Combination Inputs: F1 Materials Labor 76,000 35,000 F2 79,600 33,400 The cost of materials is $10 per pound; the cost of labor is $16 per hour. Required: 1. Compute the output-input ratio for each input of Combination F1. If required, round your answers to two decimal places. Materials Labor Does this represent a productivity improvement over the current use of inputs? What is the total dollar value of the improvement? Classify this as a technical or an allocative efficiency improvement. Finally, describe which data analytic types were used in addressing these issues (descriptive, diagnostic, predictive, and prescriptive; see Exhibits 2.5 and 2.6, for a brief review). The calculation of the current productivity ratios is , as it describes what it is. The calculation of the F1 productivity ratios is 2. Compute the output-input ratio for each input of Combination F2. If required, round your answers to two decimal places. Materials Labor Does this represent a productivity improvement over the current use of inputs? Now, compare these ratios to those of Combination F1. What has happened? F2 has productivity for materials and productivity for labor. 3. Compute the cost of producing 21,000 units of output using Combination F1. Compare this cost to the cost using Combination F2. Cost of Combination F1