Question
The Langosta Company reported data for 1997 and 1998 as follows: 1997 1998 The number of machines produced 60.000 75.000 Labor hours 20.000 18.750 The
The Langosta Company reported data for 1997 and 1998 as follows:
1997 | 1998 | |
The number of machines produced | 60.000 | 75.000 |
Labor hours | 20.000 | 18.750 |
The material used (kg) | 600.000 | 850.000 |
Selling price per unit (machine) | $50 | $45 |
Hourly labor costs | $10 | $10 |
Material cost per kg | $2 | $4 |
REQUESTED: 1. Calculate productivity profiles in 1997 and 1998. Are there productivity improvements? 2. Calculate productivity measures related to earnings for 1998. Are there productivity improvements?
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