Manson Company decided to install an automated manufacturing system. The decision to automate was made because of the promise to reduce the use of material and labor inputs. After one year of operation, management wants to evaluate the productivity change. The president is particularly interested in knowing whether the trade-off between labor, materials, and capital was favorable. Data concerning output, labor, materials, and capital are provided for the year before implementation and the year after. Year Before Year After Output 200,000 240,000 Input quantities: Materials (lbs.) 50,000 40,000 Labor (hrs.) 10,000 4,000 Capital $10,000 $600,000 Input prices: Materials $2 $2 Labor $5 $5 Capital 15% 15% Required 1. Compute the partial measures for materials, labor, and capital for each year. What caused the change in labor and materials productivity? 2. Calculate the change in profits attributable to the change in productivity of the three inputs. Assuming that these are the only three inputs, evaluate the decision to automate