A manufacturing company would like to measure total factor productivity and labor productivity. Given the following data for the last 3 years, find the total factor and labor ratios for each year. How would you interpret the results?
Category Year 1 Year 2 Year 3
(Figures are in thousands of dollars)
Sales 110 129 124
Materials 62 73 71
Labor 28 33 28
Other Inputs 8 12 10