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Information About Kreis Company Is as Follows ACalculate the Materials and Labour Productivity Ratios for 20X1 and r

Question 129

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Information about Kreis Company is as follows:
20×120×2 Output (units) 25,00027,000 Selling price per unit $25$25 Input quantities:  Materials (kg) 8,0007,500 Labour (hours) 5,5007,000 Input prices:  Materials (per kg) $4.00$5.00 Labou (per hour) $9.00$10.00\begin{array} { l r r } &20 \times 1&20 \times 2\\\text { Output (units) } & 25,000 & 27,000 \\\text { Selling price per unit } & \$ 25 & \$ 25 \\\text { Input quantities: } & & \\\text { Materials (kg) } & 8,000 & 7,500 \\\text { Labour (hours) } & 5,500 & 7,000 \\\text { Input prices: } & & \\\text { Materials (per kg) } & \$ 4.00 & \$ 5.00 \\\text { Labou (per hour) } & \$ 9.00 & \$ 10.00\end{array}
a.Calculate the materials and labour productivity ratios for 20X1 and 20X2.
b.Did materials productivity improve?
c.Did labour productivity improve?
d.By how much did profits change as a result of changes in productivity?

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b.Yes
c.N...

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