In 20x2, 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 20x1.

2. Calculate the productivity profile for 20x2, and comment on the effect of the new production and assembly process.

3. What if the labor hours used in 20x2 were 112,500? What does comparison of the 20x1 and 20x2 profiles now communicate?

Transcribed Image Text:

20x2 450,000 20x1 Number of units produced Labor hours used Materials used (lbs.) 108,000 2,160,000 1,500,000