Conway Corporation and Philips Company are computer companies. Comparative data for 20X1 and 20X3 are given below.
Assume that each 20X1 dollar is equivalent to 1.45 of the 20X3 dollars, due to inflation.
-What is Conway's 20X3 productivity measure in terms of revenues per employee?
A) $1,015.00
B) $700.00
C) $714.29
D) $870.00

Question

Conway Corporation and Philips Company are computer companies. Comparative data for 20X1 and 20X3 are given below.
  Assume that each 20X1 dollar is equivalent to 1.45 of the 20X3 dollars, due to inflation.
-What is Conway's 20X3 productivity measure in terms of revenues per employee?
A) $1,015.00 
B) $700.00 
C) $714.29 
D) $870.00

Quizplus · Accepted Answer

To calculate Conway's 20X3 productivity measure, we need to divide the 20X3 revenues by the number of employees in 20X3:

Conway 20X3 revenues = $5,800,000 / 1.45 = $4,000,000 (in 20X1 dollars)

Conway 20X3 employees = 40

Conway 20X3 productivity measure = $4,000,000 / 40 = $100,000 per employee

Therefore, the answer is:

C) $714.29

Conway Corporation and Philips Company Are Computer Companies