The Following Data Is from the Records of the Mendelsohn

question 33

Essay

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

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?

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Definitions:

Job Enrichment

A management concept focused on redesigning jobs to incorporate higher levels of responsibility and engagement to increase employee satisfaction and productivity.

Technocentric Approach

A perspective that emphasizes technology’s central role in societal development, solutions, and progress.

Anthropocentric Approach

A viewpoint that considers human beings as the central most significant entities of the universe, often evaluating other entities in terms of their usefulness to humans.

Job Design

The process of organizing tasks, duties, and responsibilities into a productive unit of work to improve satisfaction and performance.