Our examples in the chapter have focused on manufacturing, where the output is units of product and the inputs are manufacturing activities or costs. The concept of productivity can be applied in a variety of settings, wherever there are inputs and outputs. For example, consider LandscapeCity, a landscape design company that specializes in small landscape projects for people living in cities. Amanda Caldwell, the assistant manager, is in the process of trying to determine if productivity has been improving since she was hired 6 months ago. Because it is a design firm, labor is the only significant expense, but Amanda is unsure if the number of projects or the dollar of sales volume should be used when computing productivity. She has collected these data for sales and labor expenses for the past 6 months: Month Labor Expense Number of Projects Sales Dollars 1 $ 20,830 43 $ 20,990 2 27,840 58 22,800 3 20,292 50 29,680 4 14,094 14 19,460 5 14,826 19 22,580 6 21,492 50 22,420 Required: 1. Calculate the productivity for each month and the change in productivity from month to month using number of projects as the measure of output. 2. Calculate the productivity for each month and the change in productivity from month to month using sales dollars as the measure of output.
Our examples in the chapter have focused on manufacturing, where the output is units of product and the inputs are manufacturing activities or costs. The concept of productivity can be applied in a variety of settings, wherever there are inputs and outputs. For example, consider LandscapeCity, a landscape design company that specializes in small landscape projects for people living in cities. Amanda Caldwell, the assistant manager, is in the process of trying to determine if productivity has been improving since she was hired 6 months ago. Because it is a design firm, labor is the only significant expense, but Amanda is unsure if the number of projects or the dollar of sales volume should be used when computing productivity. She has collected these data for sales and labor expenses for the past 6 months: Month Labor Expense Number of Projects Sales Dollars 1 $ 20,830 43 $ 20,990 2 27,840 58 22,800 3 20,292 50 29,680 4 14,094 14 19,460 5 14,826 19 22,580 6 21,492 50 22,420 Required: 1. Calculate the productivity for each month and the change in productivity from month to month using number of projects as the measure of output. 2. Calculate the productivity for each month and the change in productivity from month to month using sales dollars as the measure of output.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Our examples in the chapter have focused on manufacturing, where the output is units of product and the inputs are manufacturing activities or costs. The concept of productivity can be applied in a variety of settings, wherever there are inputs and outputs. For example, consider LandscapeCity, a landscape design company that specializes in small landscape projects for people living in cities. Amanda Caldwell, the assistant manager, is in the process of trying to determine if productivity has been improving since she was hired 6 months ago. Because it is a design firm, labor is the only significant expense, but Amanda is unsure if the number of projects or the dollar of sales volume should be used when computing productivity. She has collected these data for sales and labor expenses for the past 6 months:
| Month | Labor Expense | Number of Projects | Sales Dollars |
|---|---|---|---|
| 1 | $ 20,830 | 43 | $ 20,990 |
| 2 | 27,840 | 58 | 22,800 |
| 3 | 20,292 | 50 | 29,680 |
| 4 | 14,094 | 14 | 19,460 |
| 5 | 14,826 | 19 | 22,580 |
| 6 | 21,492 | 50 | 22,420 |
Required:
1. Calculate the productivity for each month and the change in productivity from month to month using number of projects as the measure of output.
2. Calculate the productivity for each month and the change in productivity from month to month using sales dollars as the measure of output.
Transcribed Image Text:Required 1
Required 2
Calculate the productivity for each month and the change in productivity from month to month using sales dollars as the
measure of output. (Round your answers to 4 decimal places. Negative amounts should be indicated by a minus sign.)
Monthly
Change
Labor
Month
Sales Dollars
Productivity
Expense
1
$
20,830 $
20,990
2
$
27,840 $
22,800
3
20,292 $
29,680
4
$
14,094
$
19,460
5
14,826
22,580
6.
$
21,492
$
22,420
24
Transcribed Image Text:Required 1
Required 2
Calculate the productivity for each month and the change in productivity from month to month using number of projects as
the measure of output. (Round your answers to 4 decimal places. Negative amounts should be indicated by a minus sign.)
Monthly
Change
Labor
Number of
Month
Productivity
Expense
Projects
1
20,830
43
2
$
27,840
58
3
$
20,292
50
4
$
14,094
14
$
14,826
19
$
21,492
50
%24
%24
CO
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