Question

Various financial data for the past two years follow. LAST YEAR THIS YEAR Output: Sales $ 200,100 $ 202,100 Input: Labor 30,100 40,100 Raw materials 35,100 45,100 Energy 5,010 6,050 Capital 50,010 49,750 Other 2,010 2,875 (a) Calculate the total productivity measure for this company for both years

Answer 1

Answer: $1.637; $1.404

Step-by-step explanation:

Given that,

Last year:

Output - Sales = $200,100

Input:

Labor = 30,100

Raw materials = 35,100

Energy = 5,010

Capital = 50,010

Other = 2,010

Input = 30,100 + 35,100 + 5,010 + 50,010 + 2,010

= 122,230

Total Productivity =

=
`(200,100)/(122,230)`

= $1.637

This year:

Output - Sales = $202,100

Input:

Labor = 40,100

Raw materials = 45,100

Energy = 6,050

Capital = 49,750

Other = 2,875

Input = 40,100 + 45,100 + 6,050 + 49,750 + 2,875

= 143,875

Total Productivity =

=
`(202,100)/(143,875)`

= $1.404