Solved

The Following Data Is from the Records of the Mendelsohn

Question 165

Essay

The following data is from the records of the Mendelsohn Corporation:
20182019 Output (units) 300,000270,000 Selling price per unit $30$30 Input quantities:  Materials (pounds) 75,00060,000 Labor (hours) 48,00050,000 Input prices:  Materials (per pound) $8.00$9.00 Labor (per hour) $11.00$12.00\begin{array} { l }&2018&2019\\\text { Output (units) }&300,000&270,000\\\text { Selling price per unit }&\$30&\$30\\\\\text { Input quantities: }\\\text { Materials (pounds) } & 75,000 & 60,000 \\\text { Labor (hours) } & 48,000 &50,000\\\\\text { Input prices: }\\\text { Materials (per pound) } & \$ 8.00 & \$ 9.00 \\\text { Labor (per hour) } & \$ 11.00 & \$ 12.00\end{array}

Required:
a.Calculate the materials and labor productivity ratios for 2018 and 2019.
b.Did materials productivity improve?
c.Did labor productivity improve?
d.By how much did profits change as a result of changes in productivity?
e.How much of the profit change is attributable to price recovery?

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents