Question: In 2015 Choctaw Company implements a new process affecting labor

In 2015, Choctaw Company implements a new process affecting labor and materials. The following reported data are provided to evaluate the effect on the company’s productivity:
Required:
1. Calculate the productivity profile for 2014.
2. Calculate the productivity profile for 2015, and comment on the effect of the new production and assembly process.
3. What if the labor hours used in 2015 were 112,500? What does comparison of the 2014 and 2015 profiles now communicate?

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  • CreatedSeptember 01, 2015
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