Benjamin Corporation and Franklin Corporation Are Two Companies in the Same

question 57

Essay

Benjamin Corporation and Franklin Corporation are two companies in the same industry. Comparative data for 20X1 and 20X6 are given below. $\begin{array}{llll}&&\text { Benjamin } & \text { Franklin } \\&&\text { Corporation } & \text { Corporation }\\\text { Sales revenue } & 20 \times 1 & \$ 905,520 & \$ 1,090,000 \\& 20 \times 6 & 1,950,000 & 2,962,500 \\\text { Number of employees } & 20 \times 1 & 1,750 & 2,500 \\& 20 \times 6 & 2,250 & 4,375\end{array}$ Assume that each 20X1 dollar is equivalent to 1.90 of the 20X6 dollars, due to inflation. Required:
a. Compute Benjamin Corporation's and Franklin Corporation's 20X1 and 20X6 revenue per employee in 20X6 dollars.
b. Compare Benjamin Corporation's change in productivity between 20X1 and 20X6 with that for Franklin Corporation. Do you note any problems that may require action?

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