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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