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The Monterrey Company Has Recorded the Following Data Required:
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Question 161

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The Monterrey Company has recorded the following data: 20182019 Output (units) 42,00048,000 Selling price per unit $12$12 Input quantities:  Materials (pounds) 8,0007,500 Labor (hours) 5,0006,000 Input prices:  Materials (per pound) $4.00$5.00 Labor (per hour) $8.00$9.00\begin{array} { l }&2018&2019\\\text { Output (units) }&42,000&48,000\\\text { Selling price per unit }&\$12&\$12\\\\\text { Input quantities: }\\\text { Materials (pounds) } & 8,000 & 7,500 \\\text { Labor (hours) } & 5,000 & 6,000\\\\\text { Input prices: }\\\text { Materials (per pound) } & \$ 4.00 & \$ 5.00 \\\text { Labor (per hour) } & \$ 8.00 & \$ 9.00\end{array}

Required:
a.Calculate the materials productivity ratios for 2018 and 2019.
b.Calculate the labor productivity ratios for 2018 and 2019.
c.How much did profits change as a result of changes in productivity related to materials?
d.How much did profits change as a result of changes in productivity related to labor?

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