Bellamy Company produces handcrafted pottery that uses two inputs: materials and labor. During the past quarter, 27,000 units were produced, requiring 108,000 pounds of materials and 54,000 hours of labor. An engineering efficiency study commissioned by the local university revealed that Bellamy can produce the same 27,000 units of output using either of the following two combinations of inputs: Combination F1 Combination F2 Inputs: Materials 72,000 81,900 Labor 30,000 33,200 The cost of materials is $8 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? 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? productivity for materials and F2 has productivity for labor. 3. Compute the cost of producing 27,000 units of output using Combination F1. Compare this cost to the cost using Combination F2. Cost of Combination F1 Cost of Combination F2 Difference