MJ manufactures gas tanks. It manufactured and sold 60,000 units in 2021 and 64,000 units in 2022 at P25 per unit. In 2021 the firm used 75,000 pounds of alloy A-45 at P7.20 per pound and spent 10,000 direct labor hours at an hourly wage rate of P30. In 2022, the firm used 89,600 pounds of alloy A-45 at P6.80 per pound and spent 10,847 direct labor-hours at an hourly wage rate of P32. The total amount for all other expenses remains the same at P450,000 each year. MJ was disappointed that while the total sales increased, the P195,616 operating income earned in 2022 is only 93 percent of the amount earned in 2021, which was P210,000. What was the total productivity for 2021 in peso sales?

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Solution We need to find Total productivity in peso sales f... View the full answer