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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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