Cornerstone Exercise 15.3 (Algorithmic) Profile Productivity Measurement Objective

In 2015, Choctaw Company implements a new process affecting labor and materials. The following reported data are provided to evaluate the effect on the companys productivity:

	2014	2015
Number of units produced	570,000	420,000
Labor hours used	114,000	70,000
Materials used (lbs.)	1,425,000	933,333

Required:

1. Calculate the productivity profile for 2014. If required, round your answers to two decimal places.

Partial Operational Productivity Ratios	2014 Profile
Labor productivity ratio
Material productivity ratio

2. Calculate the productivity profile for 2015. If required, round your answers to two decimal places.

Partial Operational Productivity Ratios	2015 Profile
Labor productivity ratio
Material productivity ratio

3. What if the labor hours used in 2015 were 107,500? What does comparison of the 2014 and 2015 profiles now communicate? If required, round your answers to two decimal places.

Partial Operational Productivity Ratios	2014 Profile	2015 Profile
Labor productivity ratio
Material productivity ratio