Profile Productivity Measurement Objective

In 20x2, Choctaw Company implements a new process affecting labor and materials. The following reported data are provided to evaluate the effect on the companys productivity:

	20x1	20x2
Number of units produced	570,000	450,000
Labor hours used	190,000	112,500
Materials used (lbs.)	1,900,000	1,285,714

Required:

1. Calculate the productivity profile for 20x1. If required, round your answers to two decimal places.

Partial Operational Productivity Ratios	20x1 Profile
Labor productivity ratio
Material productivity ratio

2. Calculate the productivity profile for 20x2. If required, round your answers to two decimal places.

Partial Operational Productivity Ratios	20x2 Profile
Labor productivity ratio
Material productivity ratio

3. What if the labor hours used in 20x2 were 150,000? What does comparison of the 20x1 and 20x2 profiles now communicate? If required, round your answers to two decimal places.

Partial Operational Productivity Ratios	20x1 Profile	20x2 Profile
Labor productivity ratio
Material productivity ratio