FastCo has generated productivity data for the first two quarters of the year (Table 1). Using dollar

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Question:

FastCo has generated productivity data for the first two quarters of the year (Table 1). Using dollar measures of input and output, compare the total profit and productivity achieved for the first two quarters. How does Q2 productivity compare with Q1 productivity? Use partial factor productivity to identify what might be done to improve productivity and profitability during Q3.

Table 1: FastCo Quarterly Productivity Data

	Q1	Q2
Unit selling price	$20	$21
Total units sold	10,000	8,500
Labor hours	9,000	7,750
Labor cost/hr	$10	$10
Material usage (lb)	5,000	4,500
Material cost/lb	$15.00	$15.50
Other costs	$20,000	$18,000