Question: Use the data for Frisen Communication Inc. in problem 16-39 for the following. 2010 2009 Units manufactured 500,000 600,000 Units of SCU10 used 800,000 825,000
Use the data for Frisen Communication Inc. in problem 16-39 for the following.
| 2010 | 2009 | |
| Units manufactured | 500,000 | 600,000 |
| Units of SCU10 used | 800,000 | 825,000 |
| Direct labor hours used | 150,000 | 200,000 |
| Cost of CSU10 per unit | $156 | $135 |
| Direct labor wage rate per hour | $56 | $63 |
Required
1. Compute the total productivity ratios for 2009 and 2010.
2. On the basis of the total productivity that you computed, what conclusions can you draw about the firm's productivity in 2010 relative to 2009?
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