Question

Various financial data for the past two years follow. LAST YEAR THIS YEAR Output: Sales $ 200,200 $ 202,000 Input: Labor 30,005 40,005 Raw materials 34,500 44,500 Energy 5,000 6,100 Capital 48,990 48,990 Other 2,000 3,005 a. Calculate the total productivity measure for this company for both years.

Answer 1

The total productivity measures for this company for both years are:

LAST YEAR THIS YEAR

Total productivity 1.66 1.42

Step-by-step explanation:

a) Data and Calculations:

LAST YEAR THIS YEAR

Output: Sales $ 200,200 $ 202,000

Input: Labor 30,005 40,005

Raw materials 34,500 44,500

Energy 5,000 6,100

Capital 48,990 48,990

Other 2,000 3,000

Total input 120,495 142,595

Total productivity = Output/Input

= $ 200,200/120,495 $ 202,000/142,595

= 1.66 1.42