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Remaining Time: 34 minutes, 22 seconds. * Question Completion Status: 3. Suppose the following productivity measure was used: Productivity =sales revenue/direct labor hours worked Because of inflation, each 2019 dollar is equivalent to 1.13 dollars in 2020. Compute appropriate productivity numbers for comparing 2020 productivity with 2019 productivity. Part C: (6 Marks) La Chocola runs a chain of drive-in ice cream stands during the summer season. Managers of all stands are told to act as if they owned the stand and are judged on their profit performance. La Chocola has rented an ice cream machine for the summer for $3.600 to supply its stands with ice cream. La Chocola is not allowed to sell ice cream to other dealers because it cannot obtain a dairy license. The manager of the ice cream machine charges the stands $4 per gallon. Operating figures for the machine for the summer are as follows: Sales to the stands (16,000 gallons at $4) $64,000 Variable costs, at $2.00 per gallon $32,000 Fixed costs: Rental of machine 3,600 Other fixed costs 10,000 45,600 Operating margin $18,400 The manager of the Seef Drive-In, one of the La Chocola drive-ins, is seeking permission to sign a contract to buy ice cream from an outside supplier at $3.35 a gallon. The Seef Drive- In uses 4,000 gallons of ice cream during the summer. The controller of La Chocola refers this request to you You determine that the other fixed costs of operating the machine will decrease by $900 if the Seef Drive-In purchases from an outside supplier. The controller wants an analysis of the request in terms of overall company objectives and an explanation of your conclusion. What is the appropriate transfer price? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). IX 86 0 B Q 5 0... Arial 14px A B I U Paragraph - t ABE * 2 X 2 SIT The TOSHIBA