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:

Shape Change

The process of an object or entity altering its form, structure, or outline.

Mutual Adjustment

A process of communication and negotiation between parties to adapt to each other's needs or actions.

Mechanistic

Describing a structure or process that is rigidly managed and organized, often emphasizing efficiency, precision, and control.

Differentiation

The process of distinguishing or creating differences, often used in contexts like strategy, where companies make their products or services stand out from competitors.