The Kristofferson Company Provides the Following Information Required:
A

question 58

Essay

The Kristofferson Company provides the following information: $\begin{array} { l }&2018&2019\\\text { Output (units) }&25,000&27,000\\\text { Selling price per unit }&\$25&\$25\\\\\text { Input quantities: }\\\text { Materials (pounds) } & 8,000 & 7,500 \\\text { Labor (hours) } & 5,500 &7,000\\\\\text { Input prices: }\\\text { Materials (per pound) } & \$ 4.00 & \$ 5.00 \\\text { Labor (per hour) } & \$ 9.00 & \$ 10.00\end{array}$

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?

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Definitions:

Managers

Individuals within an organization responsible for directing, controlling, and administering work groups or departments to achieve the organization's objectives.

Knowledge

Information, understanding, and skills acquired through experience or education, allowing individuals to navigate various situations.

Knowing-Doing Gap

The gap between what people understand they ought to do and their actions in reality.

Innovations

The introduction of new ideas, products, or methods that aim to improve processes, services, or technologies.