Wells and Severson are manufacturing companies. Comparative data for 20X1 and 20X7 are as follows:

Assume that inflation has totalled 15 per cent during these 6 years so that each 20X1 euro is equivalent to 1.15 euros in 20X7, due to inflation.

1. Compute 20X1 and 20X7 productivity measures in terms of revenue per employee for Wells and Severson.

2. Compare the change in productivity between 20X1 and 20X7 for Wells with that for Severson.

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Sales revenue Number of employees 20X1 20X7 20X1 20X7 Wells €5,660,000,000 €6,000,000,000 56,600 54,800 Severson €7,658,000,000 €9,667,000,000 75,900 76,200