Goldstein Company manufactures wallets from fabric. In 2019, Goldstein made 2,700,000 wallets using 1,875,000 yards of fabric. In 2019, Goldstein has capacity to make 3,600,000 wallets and incurs a cost of $10,800,000 for this capacity. In 2020, Goldstein plans to make 3,348,000 wallets, make fabric use more efficient, and reduce capacity. Suppose that in 2020 Goldstein makes 3,348,000 wallets, uses 2,160,000 yards of fabric, and reduces capacity to 3,100,000 wallets at a cost of $10,540,000.

Required

1. Calculate the partial-productivity ratios for materials and conversion (capacity costs) for 2020, and compare them to a benchmark for 2019 calculated based on 2020 output.
2. How can Goldstein Company use the information from the partial-productivity calculations?