Information About Laure Corporation Is as Follows ACalculate the Materials and Labour Productivity Ratios for 20X1 and r

question 80

Essay

Information about Laure Corporation is as follows:
$$\begin{array} { l r r } &20 \times 1&20 \times 2\\\text { Output (units) } & 300,000 & 270,000 \\\text { Selling price per unit } & \$ 30 & \$ 30 \\\text { Input quantites: } & & \\\text { Materials (kg) } & 75,000 & 60,000 \\\text { Labour (hours) } & 48,000 & 50,000 \\\text { Input prices: } & & \\\text { Materials (per kg) } & \$ 8.00 & \$ 9.00 \\\text { Labou (per hour) } & \$ 11.00 & \$ 12.00\end{array}$$
a.Calculate the materials and labour productivity ratios for 20X1 and 20X2.
b.Did materials productivity improve?
c.Did labour 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:

Jelly

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The extra pleasure or benefit gained by a consumer from having an additional unit of a product or service.

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A root vegetable, often confused with turnips, known for its purple skin and yellow flesh; used in cooking for its mild, sweet flavor.

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A green vegetable with a large flowering head, often eaten as food.