Reference no: EM132548513
In 20x2, Choctaw Company implements a new process affecting labor and materials. The following reported data are provided to evaluate the effect on the company's productivity:
20x1 20x2
Number of units produced 690,000 360,000
Labor hours used 230,000 90,000
Materials used (lbs.) 1,533,333 720,000
Required:
Question 1. Calculate the productivity profile for 20x1. If required, round your answers to two decimal places.
Question 2. Calculate the productivity profile for 20x2. If required, round your answers to two decimal places.
Question 3. What if the labor hours used in 20x2 were 127,500? What does comparison of the 20x1 and 20x2 profiles now communicate? If required, round your answers to two decimal places.