# Eric Johnson (using data from problem 1.6) determines his costs to be as follows:

*QUESTION:*

Eric Johnson (using data from problem 1.6) determines his costs to be as follows:

• Labor: $10 per hour

• Resin: $5 per pound

• Capital expense: 1% per month of investment

• Energy: $.50 per BTU.

Show the percent change in productivity for one month last year versus one month this year, on a multi-factor basis with dollars as the common denominator.

**In problem 1.6, **Eric Johnson makes billiard balls in his New England plant. With recent increases in his costs, he has a newfound interest inefficiency. Eric is interested in determining the productivity of his organization. He would like to know if his organization is maintaining the manufacturing average of 3% increase in productivity. Re has the following data representing a month from last year and an equivalent month this year:

Show the productivity percentage change for each category and then determine the improvement for labor-hours, the typical standard for comparison.

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