The Kristofferson Company Provides the Following Information Required:
A

Essay

The Kristofferson Company provides the following information: $\begin{array} { l }&2018&2019\\\text { Output (units) }&25,000&27,000\\\text { Selling price per unit }&\$25&\$25\\\\\text { Input quantities: }\\\text { Materials (pounds) } & 8,000 & 7,500 \\\text { Labor (hours) } & 5,500 &7,000\\\\\text { Input prices: }\\\text { Materials (per pound) } & \$ 4.00 & \$ 5.00 \\\text { Labor (per hour) } & \$ 9.00 & \$ 10.00\end{array}$

Required:
a.Calculate the materials and labor productivity ratios for 2018 and 2019.
b.Did materials productivity improve?
c.Did labor productivity improve?
d.By how much did profits change as a result of changes in productivity?