Roberto Pimentel, the production manager of Zychol Chemicals, in Houston, Texas, is preparing his quarterly report, which is to include a productivity analysis for his department. One of the inputs is production data prepared by Shareena Walford, his operations analyst. The report, which she gave him this morning, showed the following: Roberto knew that his labor cost per hour had increased from an average of per hour to an average of per hour, primarily due to a move by management to become more competitive with a new company that had just opened a plant in the area. He also knew that his average cost per barrel of raw material had increased from to $.$ He was concerned about the accounting procedures that increased his capital cost from to $,$ but earlier discussions with his boss suggested that there was nothing that could be done about that allocation. Roberto wondered if his productivity had increased at all. He called Shareena