Problem:
A company has asked you to evaluate the firm's productivity by comparing this year' performance with last year's. The following data are available:
| |
Last Year
|
This Year
|
|
Output
|
12,500 units
|
14,100 units
|
|
Labor Hours
|
11,000
|
11,200
|
|
Utilities (BTUs)
|
7,800
|
9,250
|
|
Capital
|
$85,000
|
$87,000
|
Required:
Question a) Has the company improved its productivity during the past year in all the three categories? Explain your results in percentage terms.
Question b) Which category shows the greatest increase and which shows the least?
Solve the given numerical problem and illustrate step by step calculation.