The Following Information Is for the Wetherby Company Required:
1

question 18

Essay

The following information is for the Wetherby Company. $\begin{array}{lrr}&2019&2018\\\text { Units manufactured } & 60,000 & 54,000 \\\text { Units of materials used } & 144,000 & 124,000 \\\text { Number of labor hours used } & 200,000 & 180,000\\\text { Cost of materials per unit } & \$ 40 & \$ 38 \\\text { Direct labor wage rate per hour } & \$ 50 & \$ 44\end{array}$ Required:
1. Compute the partial operational productivity measures for 2018 and 2019.
2. Compute the partial financial productivity ratios for 2018 and 2019.
3. Separate the changes of the partial financial productivity ratios from 2018 to 2019 into productivity change, input price change, and output change.

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Definitions:

Tax Liability

The total amount of taxes an individual or organization is legally obligated to pay to a taxation authority.

Taxable Income

The amount of income used to determine how much tax an individual or a company owes to the government.

Taxable Income

The portion of an individual's or corporation's income that is subject to taxes according to federal, state, or local laws.

Tax Liability

The total amount of tax that an individual or business owes to the government.