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Information About Glenn Company Is as Follows ACalculate the Materials Productivity Ratios for 20X1 and 20X2

Question 27

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Information about Glenn Company is as follows:
20×120×2 Output (units) 42,00048,000 Selling price per unit $12$12 Input quantities:  Materials (kg) 8,0007,500 Labour (hours) 5,0006,000 Input prices:  Materials (per kg) $4.00$5.00 Labour (per hour) $8.00$9.00\begin{array}{lrr}&20 \times 1&20 \times 2\\\text { Output (units) } & 42,000 & 48,000 \\\text { Selling price per unit } & \$ 12 & \$ 12 \\\text { Input quantities: } & & \\\text { Materials (kg) } &8,000 &7,500 \\\text { Labour (hours) } & 5,000 & 6,000\\\text { Input prices: } & \\\text { Materials (per kg) }&\$ 4.00 & \$ 5.00 \\\text { Labour (per hour) }& \$ 8.00 & \$ 9.00\end{array}
a.Calculate the materials productivity ratios for 20X1 and 20X2.
b.Calculate the labour productivity ratios for 20X1 and 20X2.
c.How much did profits change as a result of changes in productivity related to materials?
d.How much did profits change as a result of changes in productivity related to labour?

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