A company has experienced the following changes in sales, labor, and capital. Calculate the total productivity percentage improvement from year 1 to year 2. Does the total productivity measure make more sense in this problem, since both labor and capital have been used? (Enter your answer as a percentage. Do not enter the negative sign or % sign. Round your answer to two decimal places.)

	Year 1			Year 2		Annual Inflation
Output (sales) $million	$	103.4		$	108.4	2%
Labor (payroll) $million	$	19.6		$	22.4	3%
Capital	$	60.2		$	61.0	1%

 

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To calculate the total productivity percentage improvement from year 1 to year 2 we first need to co... View the full answer