Consider the following information.

First Quarter

Second Quarter

Unit Selling Price

$15.00

$17.00

Total Units Sold

12,000

11,500

Labor Hours

10,000

9,500

Labor Cost/Hour

$9.00

$10.00

Material Usage (lbs.)

5,000

7,500

Material Cost/lb.

$12.00

$10.50

Other Costs

$25,000

$30,000

a.

Which quarter, first or second, had the higher labor productivity (output quantity per labor dollar input)?

b.

Which quarter, first or second, had the higher material productivity (output quantity per material dollar input)?

c.

Which quarter, first or second, had the higher total productivity (dollar output per total dollar input)? Interpret your answers.

FORMULA: Productivity = Quantity of Output/Quantity of Inputs