Information About Kreis Company Is as Follows ACalculate the Materials and Labour Productivity Ratios for 20X1 and r

Essay

Information about Kreis Company is as follows:
$$\begin{array} { l r r } &20 \times 1&20 \times 2\\\text { Output (units) } & 25,000 & 27,000 \\\text { Selling price per unit } & \$ 25 & \$ 25 \\\text { Input quantities: } & & \\\text { Materials (kg) } & 8,000 & 7,500 \\\text { Labour (hours) } & 5,500 & 7,000 \\\text { Input prices: } & & \\\text { Materials (per kg) } & \$ 4.00 & \$ 5.00 \\\text { Labou (per hour) } & \$ 9.00 & \$ 10.00\end{array}$$
a.Calculate the materials and labour productivity ratios for 20X1 and 20X2.
b.Did materials productivity improve?
c.Did labour productivity improve?
d.By how much did profits change as a result of changes in productivity?